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(4) monitor, protect, restore, and preserve the quality of surface waters, including actions to further the purposes of the Clean Water Legacy Act as provided in section 114D.10, subdivision 1; deleted text beginordeleted text end

(5) expand the use of biofuels, including by expanding the feasibility or reducing the cost of producing biofuels or the types of equipment, machinery, and vehicles that can use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections 41A.10, subdivision 2, and 41A.11new text begin; ornew text end

new text begin(6) increase the use of green chemistry, as defined in section 116.9401new text end.

For the purpose of clause (3), "green economy" includes strategies that reduce carbon emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass transit or otherwise reducing commuting for employees.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment.new text end

Sec. 2.

new text begin[116J.872] RESPONSE TEAM.new text end

new text begin(a) The department shall operate a fast-action economic response team to contact and work with businesses that are identified as being:new text end

new text begin(1) at risk for relocating or expanding outside the state; ornew text end

new text begin(2) prospects for expansion or relocation within the state.new text end

new text begin(b) The fast-action response team must contact identified businesses within 24 hours.new text end

Sec. 3.

Subdivision 1.

Purpose.

The Minnesota investment fund is created to provide financialnew text begin and technicalnew text end assistance, through partnership with communities, for the creation of new employment or to maintain existing employment, and for business start-up, expansions, and retention. It shall accomplish these goals by the following means:

(1) creation or retention of permanent private-sector jobs in order to create above-average economic growth consistent with environmental protection, which includes investments in technology and equipment that increase productivity and provide for a higher wage;

(2) stimulation or leverage of private investment to ensure economic renewal and competitiveness;

(3) increasing the local tax base, based on demonstrated measurable outcomes, to guarantee a diversified industry mix;

(4) improving the quality of existing jobs, based on increases in wages or improvements in the job duties, training, or education associated with those jobs;

(5) improvement of employment and economic opportunity for citizens in the region to create a reasonable standard of living, consistent with federal and state guidelines on low- to moderate-income persons; and

(6) stimulation of productivity growth through improved manufacturing or new technologies, including cold weather testing.

Sec. 4.

Subd. 3.

Eligible expenditures.

The money appropriated for this section may be used to deleted text beginfunddeleted text end:

(1)new text begin fundnew text end grants for infrastructure, loans, loan guarantees, interest buy-downs, and other forms of participation with private sources of financing, provided that a loan to a private enterprise must be for a principal amount not to exceed one-half of the cost of the project for which financing is sought; deleted text beginanddeleted text end

(2) new text beginfund new text endstrategic investments in renewable energy market development, such as low interest loans for renewable energy equipment manufacturing, training grants to support renewable energy workforce, development of a renewable energy supply chain that represents and strengthens the industry throughout the state, and external marketing to garner more national and international investment into Minnesota's renewable sector. Expenditures in external marketing for renewable energy market development are not subject to the limitations in clause (1)new text begin; andnew text end

new text begin(3) provide private entrepreneurs with training, other technical assistance, and financial assistance, as provided in the small cities development block grant programnew text end.

Sec. 5.

Subd. 4.

Eligible projects.

Assistance must be evaluated on the existence of the following conditions:

(1) creation of new jobs, retention of existing jobs, or improvements in the quality of existing jobs as measured by the wages, skills, or education associated with those jobs;

(2) increase in the tax base;

(3) the project can demonstrate that investment of public dollars induces private funds;

(4) the project can demonstrate an excessive public infrastructure or improvement cost beyond the means of the affected community and private participants in the project;

(5) the project provides higher wage levels to the community or will add value to current workforce skills;

(6)new text begin the project supports the development of microenterprises, as defined by federal statutes, through financial assistance, technical assistance, advice, or business services;new text end

A grant or loan cannot be made based solely on a finding that the conditions in clause deleted text begin(6)deleted text endnew text begin (7)new text end or deleted text begin(7)deleted text endnew text begin (8)new text end exist. A finding must be made that a condition in clause (1), (2), (3), (4), deleted text beginordeleted text end (5)new text begin, or (6)new text end also exists.

Applications recommended for funding shall be submitted to the commissioner.

Sec. 6.

Minnesota Statutes 2008, section 116J.996, is amended to read:

116J.996 MILITARY RESERVIST ECONOMIC INJURY new text beginAND VETERAN-OWNED SMALL BUSINESS new text endLOANS.

Subdivision 1.

Definitions.

(c) "Commissioner" means the commissioner of employment and economic development.

(d) "Eligible business" means a small business, as defined in section 645.445, that was operating in Minnesota on the date a military reservist received orders for active service.

(e) "Essential employee" means a military reservist who is an owner or employee of an eligible business and whose managerial or technical expertise is critical to the day-to-day operation of the eligible business.

(f) "Military reservist" means a member of the reserve component of the armed forces.

(g) "Reserve component of the armed forces" has the meaning given it in United States Code, title 10, section 101(c).

(h) "Substantial economic injury" means an economic harm to an eligible business that results in the inability of the eligible business to:

(1) meet its obligations as they mature;

(2) pay its ordinary and necessary operating expenses; or

(3) manufacture, produce, market, or provide a product or service ordinarily manufactured, produced, marketed, or provided by the eligible business.

new text begin(i) "Veteran-owned small business" means a small business, as defined in section 645.445, that is majority-owned and operated by a recently separated veteran.new text end

Subd. 2.

Loan program.

The commissioner may make onetime, interest-free loans of up to $20,000 per borrower tonew text begin:new text end

new text begin(1)new text end eligible businesses that have sustained or are likely to sustain substantial economic injury as a result of the call to active service for 180 days or more of an essential employeenew text begin; ornew text end

new text begin(2) recently separated veterans who are veterans as defined in section 197.447, and have served in active military service, at any time on or after September 11, 2001, to start a veteran-owned small businessnew text end.

Loans new text beginfor economic injury new text endmust be made for the purpose of preventing, remedying, or ameliorating the substantial economic injury.

Subd. 3.

Revolving loan account.

The commissioner shall use money appropriated for the purpose to establish a revolving loan account. All repayments of loans made under this section must be deposited into this account. Interest earned on money in the account accrues to the account. Money in the account is appropriated to the commissioner for purposes of the loan program created in this section, including costs incurred by the commissioner to establish and administer the program.

Subd. 4.

Rules.

Using the expedited rulemaking procedures of section 14.389, the commissioner shall develop and publish expedited rules for loan applications, use of funds, needed collateral, terms of loans, and other details of military reservist economic injury new text beginand veteran-owned small business new text endloans.

Sec. 7.

Subd. 3.

Purpose; duties.

The governor's Workforce Development Council shall replace the governor's Job Training Council and assume all of its requirements, duties, and responsibilities under the Workforce Investment Act. Additionally, the Workforce Development Council shall assume the following duties and responsibilities:

(a) Review the provision of services and the use of funds and resources under applicable federal human resource programs and advise the governor on methods of coordinating the provision of services and the use of funds and resources consistent with the laws and regulations governing the programs. For purposes of this section, applicable federal and state human resource programs mean the:

Additional federal and state programs and resources can be included within the scope of the council's duties if recommended by the governor after consultation with the council.

(b) Review federal, state, and local education, postsecondary, job skills training, and youth employment programs, and make recommendations to the governor and the legislature for establishing an integrated seamless system for providing education and work skills development services to learners and workers of all ages.

(c) Advise the governor on the development and implementation of statewide and local performance standards and measures relating to applicable federal human resource programs and the coordination of performance standards and measures among programs.

(g) Sponsor appropriate studies to identify human investment needs in Minnesota and recommend to the governor goals and methods for meeting those needs.

(h) Recommend to the governor goals and methods for the development and coordination of a human resource system in Minnesota.

(i) Examine federal and state laws, rules, and regulations to assess whether they present barriers to achieving the development of a coordinated human resource system.

(j) Recommend to the governor and to the federal government changes in state or federal laws, rules, or regulations concerning employment and training programs that present barriers to achieving the development of a coordinated human resource system.

(k) Recommend to the governor and to the federal government waivers of laws and regulations to promote coordinated service delivery.

(l) Sponsor appropriate studies and prepare and recommend to the governor a strategic plan which details methods for meeting Minnesota's human investment needs and for developing and coordinating a state human resource system.

new text begin(m) Provide the commissioner of employment and economic development and the committees of the legislature with responsibility for economic development with recommendations provided to the governor under this subdivision.new text end

new text begin(n) In consultation with local workforce councils and the Department of Employment and Economic Development, develop an ongoing process to identify and address local gaps in workforce services.new text end

Sec. 8.

Subd. 6.

Staffing.

The Department of Employment and Economic Development must provide staff deleted text beginsupportdeleted text endnew text begin, including but not limited to professional, technical, and clerical staff necessary to perform the duties assignednew text end to the Minnesota Workforce Development Council. deleted text beginThe support includes professional, technical, and clerical staff necessary to perform the duties assigned to the Workforce Development Council.deleted text endnew text begin All staff report to the commissioner. new text endThe council may ask for assistance from other units of state government as it requires in order to fulfill its duties and responsibilities.

Sec. 9.

Minnesota Statutes 2008, section 116L.665, is amended by adding a subdivision to read:

new text beginSubd. 8.new text end

new text beginFunding.new text end

new text beginThe commissioner shall develop recommendations on a funding formula for allocating Workforce Investment Act funds to the council with a minimum allocation of $350,000 per year. The commissioner shall report the funding formula recommendations to the legislature by January 15, 2011.new text end

Sec. 10.

new text begin[116L.98] WORKFORCE PROGRAM OUTCOMES.new text end

new text beginThe commissioner shall develop and implement a set of standard approaches for assessing the outcomes of workforce programs under this chapter. The outcomes assessed must include, but are not limited to, periodic comparisons of workforce program participants and nonparticipants. new text end

new text beginThe commissioner shall also monitor the activities and outcomes of programs and services funded by legislative appropriations and administered by the department on a pass-through basis and develop a consistent and equitable method of assessing recipients for the costs of its monitoring activities.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment.new text end

new text begin(4) science and technology business environment; ornew text end

new text begin(5) science and technology workforce preparation.new text end

new text beginSubd. 4.new text end

new text beginAdvisory commission.new text end

new text begin"Advisory commission" means the advisory commission under section 116W.051.new text end

Sec. 13.

new text begin[116W.03] MINNESOTA SCIENCE AND TECHNOLOGY AUTHORITY.new text end

new text beginSubdivision 1.new text end

new text beginMembership.new text end

new text beginThe Minnesota Science and Technology Authority consists of the commissioner of employment and economic development, the commissioner of management and budget, the commissioner of revenue, the commissioner of commerce, and the commissioner of agriculture.new text end

new text beginSubd. 2.new text end

new text beginChair; other officers.new text end

new text beginThe commissioner of employment and economic development shall serve as the chair and chief executive officer of the authority. The authority shall rotate the position of vice chair annually among its members. The commissioner of employment and economic development shall convene the first meeting of the authority no later than July 1, 2010. In the absence of the chair or vice chair at meetings of the authority members may elect a chair for the meeting, and may elect other officers as necessary from its members.new text end

new text beginSubd. 3.new text end

new text beginDelegation.new text end

new text beginIn addition to any powers to delegate that members of the authority have as commissioners, they may delegate to the chair, vice chair, or executive director their responsibilities as members of the authority for reviewing and approving financing of eligible projects, projects that have been authorized by law, or programs specifically authorized by resolution of the authority.new text end

new text beginSubd. 4.new text end

new text beginActions.new text end

new text begin(a) A majority of the authority, excluding vacancies, constitutes a quorum to conduct its business, to exercise its powers, and for all other purposes.new text end

new text begin(b) The authority may conduct its business by any technological means available, including teleconference calls or interactive video, that allows for an interaction between members. If a meeting is conducted under this paragraph, a specific location must be available for the public to attend the meeting and at least one member must be present at that location.new text end

new text beginSubd. 5.new text end

new text beginExecutive director; staffing.new text end

new text beginThe authority shall employ an executive director in the unclassified service. The initial executive director must be the individual in the position of director of the Office of Science and Technology as of January 1, 2010, under section 116J.657. The executive director is responsible for hiring staff necessary to assist the executive director to carry out the duties and responsibilities of the authority. The executive director shall perform duties that the authority may require in carrying out its responsibilities to manage and implement the funds and programs in this chapter, and comply with all state and federal program requirements, and state and federal securities and tax laws and regulations. The executive director shall assist the advisory board in fulfilling its duties under this chapter.new text end

new text beginSubd. 6.new text end

new text beginAdministrative services.new text end

new text beginThe authority shall enter into agreements for administrative and professional services and technical support.new text end

new text beginSubd. 7.new text end

new text beginExpiration.new text end

new text beginThis section expires June 30, 2018. Section 15.059, subdivision 5, does not apply to the authority.new text end

Sec. 14.

new text begin[116W.04] POWERS AND DUTIES.new text end

new text beginSubdivision 1.new text end

new text beginDuties.new text end

new text beginThe Science and Technology Authority shall: new text end

new text begin(1) coordinate public and private efforts to procure federal funding for collaborative research and development projects of primary benefit to small-sized and medium-sized businesses;new text end

new text begin(2) promote contractual relationships between Minnesota businesses that are recipients of federal grants and prime contractors, and Minnesota-based subcontractors; new text end

new text begin(3) work with Minnesota nonprofit institutions including the University of Minnesota, Minnesota State Colleges and Universities, and the Mayo Clinic in promoting collaborative efforts to respond to federal funding opportunities;new text end

new text begin(4) develop a framework for Minnesota companies to establish sole-source relationships with federal agencies; new text end

new text begin(5) provide grants or other forms of financial assistance to eligible recipients for purposes of this chapter;new text end

new text begin(6) coordinate workshops, assistance with business proposals, licensing, intellectual property protection, commercialization, and government auditing with the University of Minnesota and Minnesota State Colleges and Universities; andnew text end

new text begin(7) develop and implement a comprehensive science and technology economic development strategy for the state.new text end

new text beginSubd. 2.new text end

new text beginTechnology matchmaking.new text end

new text beginThe authority must assist businesses in identifying qualified suppliers and vendors through a program to serve as a conduit for Minnesota-based companies to network with firms able to support their success. Firms outside Minnesota can participate in the technology matchmaking network if one of the participating companies is located in Minnesota.new text end

new text beginSubd. 3.new text end

new text beginCommercialization assistance.new text end

new text beginThe authority must provide commercialization assistance to Minnesota firms that have received a Phase I Small Business Innovation Research (SBIR) or a Phase I Small Business Technology Transfer (STTR) award and are submitting a Phase II proposal. Local service providers must assist the applicant with developing and reviewing the required commercialization plan prior to Phase II submission. The authority may provide SBIR Phase I proposal technical review.new text end

new text beginSubd. 4.new text end

new text beginPower to sue; enter contracts.new text end

new text beginThe authority may sue and be sued. The authority may make and enter into contracts, leases, and agreements necessary to perform its duties and exercise its powers.new text end

new text beginSubd. 5.new text end

new text beginGifts; grants.new text end

new text beginThe authority may apply for, accept, and disburse gifts, grants, loans, or other property from the United States, the state, private sources, or any other source for any of its purposes. Money received by the authority under this subdivision must be deposited in the state treasury and is appropriated to the authority to carry out its duties.new text end

new text beginSubd. 6.new text end

new text beginContract for services.new text end

new text beginThe authority may retain or contract for the services of accountants, financial advisors, and other consultants or agents needed to perform its duties and exercise its powers.new text end

new text beginSubd. 7.new text end

new text beginFees.new text end

new text beginThe authority may set and collect fees for costs incurred by the authority, the Department of Employment and Economic Development, the Department of Management and Budget, the Department of Revenue, the Department of Commerce, the Department of Labor and Industry, and the Department of Agriculture, including costs for personnel, professional, and administrative services. new text end

new text beginSubd. 8.new text end

new text beginReports.new text end

new text begin(a) The authority shall report by February 1 each year to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over finance and economic development on its progress to design, coordinate, and administer a strategic science and technology program for the state to promote the welfare of the people of the state, maximize the economic growth of the state, and create and retain jobs in the state's industrial base through enhancement of Minnesota's:new text end

new text begin(1) high-technology research and development capabilities;new text end

new text begin(2) product and process innovation and commercialization;new text end

new text begin(4) science and technology business environment; andnew text end

new text begin(5) science and technology workforce preparation.new text end

new text begin(b) The report must include a complete operating and financial statement covering the authority's operations during the year, including amounts of income from all sources. Books and records of the authority are subject to audit by the legislative auditor in the manner prescribed for state agencies.new text end

new text beginSubd. 9.new text end

new text beginConsultative and technical services.new text end

new text beginThe authority may provide general consultative and technical services to assist eligible projects and enter into agreements or other transactions concerning the receipt or provision of those services.new text end

new text beginSubd. 10.new text end

new text beginFinancial information.new text end

new text beginFinancial information, including credit reports, financial statements, and net worth calculations, received or prepared by the authority regarding financial assistance, is private data with regard to data on individuals as defined in section 13.02, subdivision 12, and nonpublic data with regard to data not on individuals as defined in section 13.02, subdivision 9. new text end

new text beginSubd. 11.new text end

new text beginGeneral.new text end

new text beginThe authority shall have all powers necessary and appropriate to fulfill its responsibilities under this chapter. new text end

Sec. 15.

new text begin[116W.05] PROJECT FINANCIAL ASSISTANCE.new text end

new text beginSubdivision 1. new text end

new text beginDetermination of financial assistance. new text end

new text beginThe authority shall assist eligible recipients in identifying grants or other sources of financial assistance available to finance projects and may assist eligible recipients in applying for and obtaining grants and other forms of assistance.new text end

new text beginSubd. 2.new text end

new text beginFinancial feasibility review.new text end

new text begin(a) The authority shall review the proposed financing for each project submitted to the authority to determine whether: (1) the proposed project and financing plan is an eligible use of the money; and (2) the proposal is in compliance with applicable state and federal tax and securities laws and regulations. Grants in excess of $50,000 must be approved by the authority. Grants of $50,000 or less may be authorized by the executive director. All grant approvals or disapprovals must be completed within 30 days of submission to the authority. Grants approved by the executive director must be reviewed by the authority each month.new text end

new text begin(b) Unless a project is specifically authorized by law, the authority may reject the proposed financing for a project meeting the requirements in paragraph (a) if there are not sufficient funds available or if a majority of members believe the financing of the project would not be in the best interests of the state or would be detrimental to the authority's funds or programs. A determination to reject a proposed project must not be made in an arbitrary and capricious manner and must be supported by substantive evidence and documented by a resolution of the authority stating its findings.new text end

Sec. 16.

new text begin[116W.051] ADVISORY COMMISSION.new text end

new text beginSubdivision 1.new text end

new text beginAdvisory commission membership.new text end

new text beginA Science and Technology Initiative Advisory Commission of 18 members is established and is comprised of:new text end

new text begin(1) two representatives of the University of Minnesota, selected by the president of the university, including a faculty member actively involved in science and technology research;new text end

new text begin(2) two representatives of the Minnesota State Colleges and Universities, selected by the chancellor, including a faculty member actively involved in science and technology research;new text end

new text begin(3) the chief executive officer of Mayo Clinic or a designee;new text end

new text begin(4) six chief executive officers or designees from science-oriented or technology-oriented companies; new text end

new text begin(5) four representatives from science-oriented and technology-oriented organizations;new text end

new text begin(6) one representative of organized labor;new text end

new text begin(7) a venture capital representative; andnew text end

new text begin(8) a representative of angel investors.new text end

new text beginA member must have experience in science or technology in order to serve on the commission.new text end

new text beginMembers of the commission listed in clauses (4) to (8) shall be appointed by the authority.new text end

new text beginSubd. 2.new text end

new text beginAdvisory commission duties.new text end

new text beginThe advisory commission must assist the authority in developing a comprehensive science and technology economic development plan to be presented to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over economic development and higher education by January 15, 2011. The plan must include recommendations in strategic areas for science and technology investments, recommendations on additional programs to support science and technology focused economic development activities in the state, selection of specific programs and grantees for support from program funds authorized by the advisory commission and ongoing assessment of the effectiveness of programmatic elements according to metrics to be developed by the authority in consultation with the advisory commission. The advisory commission may also advise and assist the authority in fulfilling its duties under section 116W.04.new text end

new text beginSubd. 3.new text end

new text beginMembership terms; vacancies; compensation.new text end

new text beginThe membership terms, removal of members, and filling of vacancies are as provided under section 15.059. The executive director may provide compensation to members if funds are available.new text end

new text beginSubd. 4.new text end

new text beginExpiration.new text end

new text beginSubd. 5.new text end

new text beginConvening of meetings; staffing. new text end

new text beginThe executive director of the authority must convene the first meeting of the commission by August 1, 2010. The executive director must provide administrative support and staff to the commission.new text end

Sec. 17.

new text begin[116W.20] MONEY OF THE AUTHORITY.new text end

new text beginSubdivision 1.new text end

new text beginFunctions of commissioner of management and budget.new text end

new text beginExcept as otherwise provided in this section, money of the authority must be paid to the commissioner of management and budget as agent of the authority and the commissioner shall not commingle the money with other money. The money in the accounts of the authority must be paid out only on warrants drawn by the commissioner of management and budget on requisition of the executive director of the authority or of another officer or employee as the authority authorizes. Deposits of the authority's money must, if required by the commissioner or the authority, be secured by obligations of the United States or of the state of a market value equal at all times to the amount of the deposit and all banks and trust companies are authorized to give security for the deposits. All money paid to the commissioner as agent of the authority is appropriated to the authority. The commissioner must annually report to the committees of the legislature with responsibility for economic development and management and budget on the use of appropriations under this section.new text end

new text beginSubd. 2.new text end

new text beginSystem of accounts.new text end

new text beginThe commissioner of management and budget shall prescribe a system of accounts.new text end

Sec. 18.

new text begin[116W.21] NONLIABILITY.new text end

new text beginSubdivision 1.new text end

new text beginNonliability of individuals.new text end

new text beginNo member of the authority, staff of the authority, or other person executing other agreements or contracts of the authority is liable personally or is subject to any personal liability or accountability by reason of their issuance, execution, delivery, or performance.new text end

new text beginSubd. 2.new text end

new text beginNonliability of state.new text end

new text beginThe state is not liable on loans or other agreements or contracts of the authority issued or entered into under this chapter and the loans or other agreements or contracts of the authority are not a debt of the state. The loans or other agreements or contracts of the authority must contain on their face a statement to that effect.new text end

Sec. 19.

new text begin[116W.23] STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.new text end

new text beginThe state pledges and agrees with parties to any loans or other agreements or contracts of the authority that the state will not: (1) limit or alter the rights vested in the authority to fulfill the terms of any agreements made with the parties to any loans or other agreements or contracts of the authority; or (2) in any way impair the rights and remedies of the parties to any loans or other agreements or contracts of the authority. The authority may include this pledge and agreement of the state in any agreement with the parties in any loans or other agreements or contracts of the authority. new text end

Sec. 20.

new text begin[116W.24] RESERVES; FUNDS; ACCOUNTS.new text end

new text beginThe authority may establish reserves, funds, or accounts necessary to carry out the purposes of the authority or to comply with any agreement made by or any resolution passed by the authority.new text end

Sec. 21.

Minnesota Statutes 2008, section 136F.06, is amended by adding a subdivision to read:

new text beginSubd. 4.new text end

new text beginWorkforce focus.new text end

new text beginThe board must identify colleges offering flexible academic programs that accommodate the needs of laid-off workers and assist its other institutions in determining whether to offer similar programs. Colleges must increase the number of certificate programs available to meet the needs of unemployed Minnesotans.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment.new text end

Sec. 22.

363A.42 PUBLIC RECORDS; ACCESSIBILITY.

Subdivision 1.

Definitions.

For purposes of this section, "records" means anynew text beginpublicly availablenew text end recorded information that is collected, created, received, maintained or disseminated by the executive, judicial or legislative branches of the state, the Minnesota State Colleges and Universities, the University of Minnesota, cities, towns, counties, school districts and all other political subdivisions of the state, regardless of physical form or method of storage.

Subd. 2.

Accessibility.

deleted text beginAlldeleted text endnew text begin Upon request by an individual,new text end records must benew text begin madenew text endavailablenew text begin within a reasonable time periodnew text end to persons with disabilities in a manner consistent with state and federal laws prohibiting discrimination against persons with disabilities. Reasonable modifications must be made in any policies, practices and procedures that might otherwise deny equal access to records to individuals with disabilities.

new text beginSubd. 2a.new text end

new text beginExemptions.new text end

new text beginNotwithstanding any law to the contrary except Laws 2009, chapter 131, this section does not apply to: (1) technology procured or developed prior to January 1, 2013, unless substantially modified or substantially enhanced after January 1, 2013; or (2) records that cannot be reasonably modified to be accessible without an undue burden as defined in section 16E.015, subdivision 4, to the public entity.new text end

Subd. 3.

Penalties.

Violation of this section is subject to a penalty of $500 per violation, plusnew text begin reasonablenew text end attorney fees, costs and disbursements, payable to a qualified disabled person under section 363A.03, subdivision 36, new text beginwho sought the accessible record under subdivision 2, new text endby the public entity in violation of this section.new text begin The total amount of penalties payable to any individual or class regardless of the number of violations is limited to $15,000. In any class action or series of class actions which arise from a violation of this section, the amount of attorney fees awarded against the violating public entity may not exceed $15,000. Any action must be commenced within one year of the occurrence of the alleged violation.new text end

Sec. 23.

363A.43 CONTINUING EDUCATION; ACCESSIBILITY.

Subdivision 1.

Accessibility.

deleted text beginAnydeleted text endnew text begin Upon request by an individual, anynew text end continuing education or professional development course, offering, material or activity approved or administered by the state, political subdivisions of the state, the University of Minnesota or the Minnesota State Colleges and Universities, must benew text begin madenew text end availablenew text begin within a reasonable time periodnew text end to persons with disabilities in a manner consistent with state and federal laws prohibiting discrimination against persons with disabilities. Reasonable modifications must be made in any policies, practices and procedures that might otherwise deny equal access to continuing education or professional development to individuals with disabilities.

Subd. 2.

Penalties.

Violation of this section is subject to a penalty of $500 per violation, plusnew text begin reasonablenew text end attorney fees, costs and disbursements, payable to a qualified disabled person under section 363A.03, subdivision 36, new text beginwho sought the accessible format under subdivision 1, new text endby the public entity or the entity offering the course, material, or activity under a contract with a public entity.new text begin The total amount of penalties payable to any individual or class regardless of the number of violations is limited to $15,000. In any class action or series of class actions which arise from a violation of this section, the amount of attorney fees awarded against the violating public entity may not exceed $15,000. Any action must be commenced within one year of the occurrence of the alleged violation.new text end

Sec. 24.

Subd. 3.

Adoption by governing body.

A proposed comprehensive plan or an amendment to it may not be acted upon by the governing body until it has received the recommendation of the planning agency or until 60 days have elapsed from the date an amendment proposed by the governing body has been submitted to the planning agency for its recommendation. Unless otherwise provided by charter, the governing body may by resolution deleted text beginby a two-thirds vote of all of its membersdeleted text end adopt and amend the comprehensive plan or portion thereof as the official municipal plan upon such notice and hearing as may be prescribed by ordinance.new text begin Except for amendments to permit affordable housing development, a resolution to amend or adopt a comprehensive plan must be approved by a two-thirds vote of all of the members. Amendments to permit an affordable housing development are approved by a simple majority of all of the members. For purposes of this subdivision, "affordable housing development" means a development in which at least 20 percent of the residential units are restricted to occupancy for at least ten years by residents whose household income at the time of initial occupancy does not exceed 60 percent of area median income, adjusted for household size, as determined by the United States Department of Housing and Urban Development, and with respect to rental units, the rents for affordable units do not exceed 30 percent of 60 percent of area median income, adjusted for household size, as determined annually by the United States Department of Housing and Urban Development.new text end

Sec. 25.

Subd. 5.

Area of operation.

The area of operation of a county economic development service provider created under this section shall include all cities new text beginand townships new text endwithin a county that have adopted resolutions electing to participate. A city new text beginor township new text endmay adopt a resolution electing to withdraw participation. The withdrawal election may be made every fifth year following adoption of the resolution electing participation. The withdrawal election is effective on the anniversary date of the original resolution provided notice is given to the county economic development authority not less than 90 nor more than 180 days prior to that anniversary date. The city new text beginor township new text endelecting to withdraw retains any rights, obligations, and liabilities it obtained or incurred during its participation. Any city new text beginor township new text endwithin the county shall have the option to adopt a resolution to prohibit the county economic development service provider created under this section from operating within its boundaries and (1) within an agreed upon urban service area, or (2) within the distance approved in the committee report referenced in subdivision 3. If a city new text beginor township new text endprohibits a county economic development service provider created under this section from operating within its boundaries, the city's new text beginor township's new text endproperty taxpayers shall not be subject to the property tax levied for the county economic development service provider.

Sec. 26.

Subd. 10.

Services performed by governmental units; commonality of powers.

Notwithstanding the provisions of subdivision 1 requiring commonality of powers between parties to any agreement, the governing body of any governmental unit as defined in subdivision 1 may enter into agreements with any other governmental unit to perform on behalf of that unit any service or function which the governmental unit providing the service or function is authorized to provide for itself.new text begin If the agreement has the effect of eliminating or replacing a public employee who is part of a collective bargaining agreement represented by an exclusive representative, and there is no provision in the collective bargaining agreement detailing the effect of the action on the affected public employee, negotiations on the effects to the employee of the job elimination or restructuring must be conducted between the exclusive representative and the employer.new text end

Sec. 27.

Subd. 2.

Business and Community Development

8,980,000

8,980,000

Appropriations by Fund

General

7,941,000

7,941,000

Remediation

700,000

700,000

Workforce Development

339,000

339,000

(a) $700,000 the first year and $700,000 the second year are from the remediation fund for contaminated site cleanup and development grants under Minnesota Statutes, section 116J.554. This appropriation is available until expended.

(b) $200,000 each year is from the general fund for a grant to WomenVenture for women's business development programs and for programs that encourage and assist women to enter nontraditional careers in the trades; manual and technical occupations; science, technology, engineering, and mathematics-related occupations; and green jobs. This appropriation may be matched dollar for dollar with any resources available from the federal government for these purposes with priority given to initiatives that have a goal of increasing by at least ten percent the number of women in occupations where women currently comprise less than 25 percent of the workforce. The appropriation is available until expended.

(c) $105,000 each year is from the general fund and $50,000 each year is from the workforce development fund for a grant to the Metropolitan Economic Development Association for continuing minority business development programs in the metropolitan area. This appropriation must be used for the sole purpose of providing free or reduced fee business consulting services to minority entrepreneurs and contractors.

(d)(1) $500,000 each year is from the general fund for a grant to BioBusiness Alliance of Minnesota for bioscience business development programs to promote and position the state as a global leader in bioscience business activities. This appropriation is added to the department's base. These funds may be used to create, recruit, retain, and expand biobusiness activity in Minnesota; implement the destination 2025 statewide plan; update a statewide assessment of the bioscience industry and the competitive position of Minnesota-based bioscience businesses relative to other states and other nations; and develop and implement business and scenario-planning models to create, recruit, retain, and expand biobusiness activity in Minnesota.

(2) The BioBusiness Alliance must report each year by February 15 to the committees of the house of representatives and the senate having jurisdiction over bioscience industry activity in Minnesota on the use of funds; the number of bioscience businesses and jobs created, recruited, retained, or expanded in the state since the last reporting period; the competitive position of the biobusiness industry; and utilization rates and results of the business and scenario-planning models and outcomes resulting from utilization of the business and scenario-planning models.

(e)(1) Of the money available in the Minnesota Investment Fund, Minnesota Statutes, section 116J.8731, to the commissioner of the Department of Employment and Economic Development, up to $3,000,000 is appropriated in fiscal year 2010 for a loan to an aircraft manufacturing and assembly company, associated with the aerospace industry, for equipment utilized to establish an aircraft completion center at the Minneapolis-St. Paul International Airport. The finishing center must use the state's vocational training programs designed specifically for aircraft maintenance training, and to the extent possible, work to recruit employees from these programs. The center must create at least 200 new manufacturing jobs within 24 months of receiving the loan, and create not less than 500 new manufacturing jobs over a five-year period in Minnesota.

(2) This loan is not subject to loan limitations under Minnesota Statutes, section 116J.8731, subdivision 5. Any match requirements under Minnesota Statutes, section 116J.8731, subdivision 3, may be made from current resources. This is a onetime appropriation and is effective the day following final enactment.

(f) $65,000 each year is from the general fund for a grant to the Minnesota Inventors Congress, of which at least $6,500 must be used for youth inventors.

(g) $200,000 the first year and $200,000 the second year are for the Office of Science and Technology. This is a onetime appropriation.

(h) $500,000 the first year and $500,000 the second year are for a grant to Enterprise Minnesota, Inc., for the small business growth acceleration program under Minnesota Statutes, section 116O.115. This is a onetime appropriation and is available until expended.

(i)(1) $100,000 each year is from the workforce development fund for a grant under Minnesota Statutes, section 116J.421, to the Rural Policy and Development Center at St. Peter, Minnesota. The grant shall be used for research and policy analysis on emerging economic and social issues in rural Minnesota, to serve as a policy resource center for rural Minnesota communities, to encourage collaboration across higher education institutions, to provide interdisciplinary team approaches to research and problem-solving in rural communities, and to administer overall operations of the center.

(2) The grant shall be provided upon the condition that each state-appropriated dollar be matched with a nonstate dollar. Acceptable matching funds are nonstate contributions that the center has received and have not been used to match previous state grants. Any funds not spent the first year are available the second year.

(j) Notwithstanding Minnesota Statutes, section 268.18, subdivision 2, $414,000 of funds collected for unemployment insurance administration under this subdivision is appropriated as follows: $250,000 to Lake County for ice storm damage; $64,000 is for the city of Green Isle for reimbursement of fire relief efforts and other expenses incurred as a result of the fire in the city of Green Isle; and $100,000 is to develop the construction mitigation pilot program to make grants deleted text beginfor up to five projects statewide availabledeleted text end to local government units to mitigate the impacts of transportation construction on local small business. These are onetime appropriations and are available until expended.

(k) Up to $10,000,000 is appropriated from the Minnesota minerals 21st century fund to the commissioner of Iron Range resources and rehabilitation to make a grant or forgivable loan to a manufacturer of windmill blades at a facility to be located within the taconite tax relief area defined in Minnesota Statutes, section 273.134.new text begin Of this amount, $2,000,000 is for a grant to the Mountain Iron Economic Development Authority for renewable energy projects.new text end

(l) $1,000,000 is appropriated from the Minnesota minerals 21st century fund to the Board of Trustees of the Minnesota State Colleges and Universities for a grant to the Northeast Higher Education District for planning, design, and construction of classrooms and housing facilities for upper division students in the engineering program.

(m)(1) $189,000 each year is appropriated from the workforce development fund for grants of $63,000 to eligible organizations each year to assist in the development of entrepreneurs and small businesses. Each state grant dollar must be matched with $1 of nonstate funds. Any balance in the first year does not cancel but is available in the second year.

(2) Three grants must be awarded to continue or to develop a program. One grant must be awarded to the Riverbend Center for Entrepreneurial Facilitation in Blue Earth County, and two to other organizations serving Faribault and Martin Counties. Grant recipients must report to the commissioner by February 1 of each year that the organization receives a grant with the number of customers served; the number of businesses started, stabilized, or expanded; the number of jobs created and retained; and business success rates. The commissioner must report to the house of representatives and senate committees with jurisdiction over economic development finance on the effectiveness of these programs for assisting in the development of entrepreneurs and small businesses.

new text beginNot later than 30 days after the effective date of this section, the commissioner of employment and economic development shall submit to the chairs and ranking minority members of the senate and house of representatives committees with primary jurisdiction over jobs and employment and economic development a report that identifies retention methods the department currently uses, and retention methods the department could use in the future, to identify businesses at risk for relocation or expansion outside of this state. The report must also include a proactive plan to identify businesses outside of this state that are seeking to relocate or expand, or that could be encouraged to relocate or expand through the use of incentives. In developing the plan, the commissioner shall collaborate with economic development stakeholders from state government, business, and nongovernmental organizations.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment.new text end

Sec. 29. new text beginCUSTOMER SERVICE.new text end

new text begin(a) The commissioner of employment and economic development, in consultation with workforce service area staff, must, as soon as practical, develop and implement processes and procedures to ensure that unemployed Minnesotans who go to a workforce center are provided, to the fullest extent possible, seamless assistance in applying for unemployment benefits, accessing resource room resources, searching for jobs, accessing training and other services available to unemployed workers, and receiving answers to questions about unemployment insurance.new text end

new text begin(b) The actions taken to comply with paragraph (a) must include, at a minimum, the implementation of a procedure by which unemployed Minnesotans may receive, at their option, face-to-face consultation and assistance in their local workforce center on applying for unemployment benefits, accessing resource room resources, searching for jobs, accessing training and other services available to unemployed workers, and receiving answers to questions about unemployment insurance.new text end

new text begin(c) The commissioner is authorized and encouraged to maximize the use of existing employees and federal dollars to accomplish paragraph (a), including, but not limited to, paying portions of existing employees' salaries from more than one source of funding, ensuring that employees are cross-trained to perform functions beyond that required by paragraph (b) when such employees are stationed in workforce centers, and implementing need-based scheduling of employees to ensure that each workforce center is adequately staffed during peak demand hours for the services contemplated by paragraph (a).new text end

new text begin(d) By September 1, 2010, the commissioner must provide an initial written report to the chairs and ranking minority members of the standing committees of the senate and house of representatives having jurisdiction over economic and workforce development issues on the actions taken under paragraph (a) and the result of those actions. The report must include detailed information on new additional resources provided by the department to ensure that the issues in paragraph (a) are addressed. A second report with updated information must be provided to the chairs and ranking minority members of the standing committees of the senate and house of representatives having jurisdiction over economic and workforce development issues by January 15, 2011.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment and expires August 31, 2011.new text end

new text beginBy January 15, 2011, the governor's Workforce Development Council executive committee shall submit a report to the senate and house of representatives committees with jurisdiction over workforce development programs on the performance and outcomes of the workforce centers, as required by Minnesota Statutes, section 116L.665, subdivision 4. This report must contain recommendations for an ongoing process to identify local gaps in workforce services and ways to fill the gaps. The Department of Employment and Economic Development and the workforce councils should be included in the process for identifying service gaps. The governor's Workforce Development Council executive committee must submit draft-guiding principles to the legislature for review and feedback by August 12, 2010.new text end

Sec. 31. new text beginDEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT BLOCK GRANT REPORT.new text end

new text beginThe commissioner of employment and economic development shall study and report to the chairs and ranking minority members of the house of representatives and senate committees having jurisdiction over economic development and workforce issues on the use of block grant funding to be administered by the Workforce Development Division and the Business and Community Development Division. The report must include recommendations for the use of block grant funding including goals, grant award criteria, RFP procedures, priorities for target populations and the services to be provided, and inclusion of all pass-through grants administered by the department including those receiving direct state appropriations. The recommendations must contain specific proposals on providing grant oversight, evaluation, and administration of allocated funds in order to maximize services to target populations.new text end

Sec. 32. new text beginSTUDY OF DIVISION OF STATE DEPOSITORY ACCOUNTS AND GENERAL FUND REVENUE ACCOUNT.new text end

new text begin(a) The Carlson School of Management at the University of Minnesota is requested to study: new text end

new text begin(1) the feasibility of dividing the state's general fund revenue account among community financial institutions and transferring the state's major and minor accounts to community financial institutions in order to ensure that state money benefits Minnesota residents; new text end

new text begin(2) the potential economic benefit and cost of transferring all major and minor accounts to community financial institutions; andnew text end

new text begin(3) the potential economic benefit and cost to governmental entities as defined by Minnesota Statutes, section 118A.01, subdivision 2, from an increase in their use of community financial institutions as defined in clause (1).new text end

new text begin(b) The results of the study must be reported to the legislature by December 1, 2010.new text end

new text beginFor purposes of this section, "community financial institution" means a federally insured bank or credit union, chartered as a bank or credit union by the state of Minnesota or the United States, that is headquartered in Minnesota and has no more than $2,500,000,000 in assets.new text end

Sec. 33. new text beginCOMPARATIVE STUDY OF STATE REGULATION AFFECTING SMALL BUSINESS START-UPS.new text end

new text begin(a) $65,000 is appropriated for fiscal year 2011 from the general fund to the Legislative Coordinating Commission to fund a comparative study of the effects of state regulation on the cost and delay associated with starting a typical small business in Minnesota, Iowa, North Dakota, South Dakota, and Wisconsin. The Legislative Coordinating Commission must also apply for a grant to fund the study. This is a onetime appropriation.new text end

new text begin(b) The study, to be conducted by a higher education institution, must examine the typical cost and delay required by state regulation in the five states to start a typical small services business, small retail business, and small manufacturing business. Within each of those three categories, the study must choose to study similar types of businesses and follow the start-up process in the five states from beginning to end, including formation, financing, licensing, permits, reporting requirements, employment laws, and state and local taxes. The study must result in a written report submitted to the Legislative Coordinating Commission no later than December 1, 2011.new text end

new text begin(c) The Legislative Coordinating Commission shall request proposals and choose the recipient of the grant from among higher education institutions that have a graduate program in business, business administration, or a similar field. The Legislative Coordinating Commission shall periodically monitor the recipient's progress on the study and written report. The Legislative Coordinating Commission shall submit the written report as a report to the legislature in compliance with Minnesota Statutes, sections 3.195 and 3.197.new text end

new text begin(d) If the funds appropriated in this section are unexpended, the remaining balance must be transferred to the Science and Technology Authority.new text end

Sec. 34. new text beginAPPROPRIATION.new text end

new text begin(a) $107,000 is appropriated from the general fund in fiscal year 2011 to the Minnesota Science and Technology Authority for the purposes of Minnesota Statutes, chapter 116W.new text end

new text begin(b) The general fund appropriation in Laws 2009, chapter 78, article 1, section 3, subdivision 2, is reduced by $107,000 beginning in fiscal year 2011.new text end

new text begin(c) Of the appropriation to the commissioner of employment and economic development under section 115C.08, subdivision 4, paragraph (c), in fiscal year 2011 only, $300,000 is for a grant to the Minneapolis Park and Recreation Board for cleanup of contaminated soils related to construction of the East Phillips Cultural and Community Center. This is a onetime appropriation and is available until expended.new text end

Sec. 35. new text beginTRANSFER.new text end

new text beginThe commissioner of management and budget must transfer any remaining balance of the appropriation made in Laws 2009, chapter 78, article 1, section 3, subdivision 2, paragraph (g), to the Minnesota Science and Technology Authority.new text end

Sec. 2.

Subd. 20.

Noncovered employment.

(1) employment for the United States government or an instrumentality thereof, including military service;

(2) employment for a state, other than Minnesota, or a political subdivision or instrumentality thereof;

(3) employment for a foreign government;

(4) employment for an instrumentality wholly owned by a foreign government, if the employment is of a character similar to that performed in foreign countries by employees of the United States government or an instrumentality thereof and the United States Secretary of State has certified that the foreign government grants an equivalent exemption to similar employment performed in the foreign country by employees of the United States government and instrumentalities thereof;

(5) employment covered under United States Code, title 45, section 351, the Railroad Unemployment Insurance Act;

(6) employment covered by a reciprocal arrangement between the commissioner and another state or the federal government that provides that all employment performed by an individual for an employer during the period covered by the reciprocal arrangement is considered performed entirely within another state;

(7) employment for a church or convention or association of churches, or an organization operated primarily for religious purposes that is operated, supervised, controlled, or principally supported by a church or convention or association of churches described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from income tax under section 501(a);

(8) employment of a duly ordained or licensed minister of a church in the exercise of a ministry or by a member of a religious order in the exercise of duties required by the order, for Minnesota or a political subdivision or an organization described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from income tax under section 501(a);

(9) employment of an individual receiving rehabilitation of "sheltered" work in a facility conducted for the purpose of carrying out a program of rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury or a program providing "sheltered" work for individuals who because of an impaired physical or mental capacity cannot be readily absorbed in the competitive labor market. This clause applies only to services performed for Minnesota or a political subdivision or an organization described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from income tax under section 501(a) in a facility certified by the Rehabilitation Services Branch of the department or in a day training or habilitation program licensed by the Department of Human Services;

(10) employment of an individual receiving work relief or work training as part of an unemployment work relief or work training program assisted or financed in whole or in part by any federal agency or an agency of a state or political subdivision thereof. This clause applies only to employment for Minnesota or a political subdivision or an organization described in United States Code, title 26, section 501(c)(3) of the federal Internal Revenue Code and exempt from income tax under section 501(a). This clause does not apply to programs that require unemployment benefit coverage for the participants;

(11) employment for Minnesota or a political subdivision as an elected official, a member of a legislative body, or a member of the judiciary;

(12) employment as a member of the Minnesota National Guard or Air National Guard;

(13) employment for Minnesota, a political subdivision, or instrumentality thereof, as an employee serving only on a temporary basis in case of fire, flood, tornado, or similar emergency;

(14) employment as an election official or election worker for Minnesota or a political subdivision, but only if the compensation for that employment was less than $1,000 in a calendar year;

(15) employment for Minnesota that is a major policy-making or advisory position in the unclassified service, including those positions established under section 43A.08, subdivision 1a;

(16) employment for a political subdivision of Minnesota that is a nontenured major policy making or advisory position;

(17) domestic employment in a private household, local college club, or local chapter of a college fraternity or sorority performed for a person, only if the wages paid in any calendar quarter in either the current or prior calendar year to all individuals in domestic employment totaled less than $1,000.

"Domestic employment" includes all service in the operation and maintenance of a private household, for a local college club, or local chapter of a college fraternity or sorority as distinguished from service as an employee in the pursuit of an employer's trade or business;

(18) employment of an individual by a son, daughter, or spouse, and employment of a child under the age of 18 by the child's father or mother;

(19) new text beginemployment for a personal care assistance provider agency by an immediate family member of a recipient who provides the direct care to the recipient through the personal care assistance program under section 256B.0659;new text end

new text begin(20) new text endemployment of an inmate of a custodial or penal institution;

deleted text begin(20)deleted text endnew text begin (21)new text end employment for a school, college, or university by a student who is enrolled and is regularly attending classes at the school, college, or university;

deleted text begin(21)deleted text endnew text begin (22) new text endemployment of an individual who is enrolled as a student in a full-time program at a nonprofit or public educational institution that maintains a regular faculty and curriculum and has a regularly organized body of students in attendance at the place where its educational activities are carried on, taken for credit at the institution, that combines academic instruction with work experience, if the employment is an integral part of the program, and the institution has so certified to the employer, except that this clause does not apply to employment in a program established for or on behalf of an employer or group of employers;

deleted text begin(22)deleted text endnew text begin (23)new text end employment of university, college, or professional school students in an internship or other training program with the city of St. Paul or the city of Minneapolis under Laws 1990, chapter 570, article 6, section 3;

deleted text begin(23)deleted text endnew text begin (24)new text end employment for a hospital by a patient of the hospital. "Hospital" means an institution that has been licensed by the Department of Health as a hospital;

deleted text begin(24)deleted text endnew text begin (25)new text end employment as a student nurse for a hospital or a nurses' training school by an individual who is enrolled and is regularly attending classes in an accredited nurses' training school;

deleted text begin(25)deleted text endnew text begin (26)new text end employment as an intern for a hospital by an individual who has completed a four-year course in an accredited medical school;

deleted text begin(26)deleted text endnew text begin (27)new text end employment as an insurance salesperson, by other than a corporate officer, if all the wages from the employment is solely by way of commission. The word "insurance" includes an annuity and an optional annuity;

deleted text begin(27)deleted text endnew text begin (28)new text end employment as an officer of a township mutual insurance company or farmer's mutual insurance company operating under chapter 67A;

deleted text begin(28)deleted text endnew text begin (29)new text end employment of a corporate officer, if the officer owns 25 percent or more of the employer corporation, and employment of a member of a limited liability company, if the member owns 25 percent or more of the employer limited liability company;

deleted text begin(29)deleted text endnew text begin(30) new text endemployment as a real estate salesperson, by other than a corporate officer, if all the wages from the employment is solely by way of commission;

deleted text begin(30)deleted text endnew text begin (31)new text end employment as a direct seller as defined in United States Code, title 26, section 3508;

deleted text begin(31)deleted text endnew text begin (32)new text end employment of an individual under the age of 18 in the delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution;

deleted text begin(32)deleted text endnew text begin (33)new text end casual employment performed for an individual, other than domestic employment under clause (17), that does not promote or advance that employer's trade or business;

deleted text begin(34)deleted text endnew text begin (35)new text end if employment during one-half or more of any pay period was covered employment, all the employment for the pay period is considered covered employment; but if during more than one-half of any pay period the employment was noncovered employment, then all of the employment for the pay period is considered noncovered employment. "Pay period" means a period of not more than a calendar month for which a payment or compensation is ordinarily made to the employee by the employer.

Sec. 3.

Minnesota Statutes 2008, section 268.035, is amended by adding a subdivision to read:

new text beginSubd. 21d.new text end

new text beginStaffing service.new text end

new text beginA "staffing service" is an employer whose business involves employing individuals directly for the purpose of furnishing temporary assignment workers to clients of the staffing service.new text end

Sec. 4.

Subd. 23a.

Suitable employment.

(a) Suitable employment means employment in the applicant's labor market area that is reasonably related to the applicant's qualifications. In determining whether any employment is suitable for an applicant, the degree of risk involved to the health and safety, physical fitness, prior training, experience, length of unemployment, prospects for securing employment in the applicant's customary occupation, and the distance of the employment from the applicant's residence is considered.

(b) In determining what is suitable employment, primary consideration is given to the temporary or permanent nature of the applicant's separation from employment and whether the applicant has favorable prospects of finding employment in the applicant's usual or customary occupation at the applicant's past wage level within a reasonable period of time.

If prospects are unfavorable, employment at lower skill or wage levels is suitable if the applicant is reasonably suited for the employment considering the applicant's education, training, work experience, and current physical and mental ability.

The total compensation must be considered, including the wage rate, hours of employment, method of payment, overtime practices, bonuses, incentive payments, and fringe benefits.

(c) When potential employment is at a rate of pay lower than the applicant's former rate, consideration must be given to the length of the applicant's unemployment and the proportion of difference in the rates. Employment that may not be suitable because of lower wages during the early weeks of the applicant's unemployment may become suitable as the duration of unemployment lengthens.

(d) For an applicant seasonally unemployed, suitable employment includes temporary work in a lower skilled occupation that pays average gross weekly wages equal to or more than 150 percent of the applicant's weekly unemployment benefit amount.

(e) If a majority of the applicant's weeks of employment in the base period includes part-time employment, part-time employment in a position with comparable skills and comparable hours that pays comparable wages is considered suitable employment.

Full-time employment is not considered suitable employment for an applicant if a majority of the applicant's weeks of employment in the base period includes part-time employment.

(f) To determine suitability of employment in terms of shifts, the arrangement of hours in addition to the total number of hours is to be considered. Employment on a second, third, rotating, or split shift is suitable employment if it is customary in the occupation in the labor market area.

(g) Employment is not considered suitable if:

(1) the position offered is vacant because of a labor dispute;

(2) the wages, hours, or other conditions of employment are substantially less favorable than those prevailing for similar employment in the labor market area; deleted text beginordeleted text end

(3) as a condition of becoming employed, the applicant would be required to join a company union or to resign from or refrain from joining any bona fide labor organizationnew text begin; ornew text end

new text begin(4) the employment is with a staffing service and less than 45 percent of the applicant's wage credits are from a job assignment with the client of a staffing servicenew text end.

new text begin(h) A job assignment with a staffing service is considered suitable only if 45 percent or more of the applicant's wage credits are from job assignments with clients of a staffing service and the job assignment meets the definition of suitable employment under paragraph (a).new text end

Sec. 5.

Subdivision 1.

Tax accounts assigned.

(a) Any person that contracts with a taxpaying employer to have that person obtain the taxpaying employer's workforce and provide workers to the taxpaying employer for a fee is, as of the effective date of the contract, assigned for the duration of the contract the taxpaying employer's account under section 268.045. That tax account must be maintained by the person separate and distinct from every other tax account held by the person and identified in a manner prescribed by the commissioner. The tax account is, for the duration of the contract, considered that person's account for all purposes of this chapter. The workers obtained from the taxpaying employer and any other workers provided by that person to the taxpaying employernew text begin, including officers of the taxpaying employer as defined in section 268.035, subdivision 20, clause (28), whose wages paid by the person are considered paid in covered employment under section 268.035, subdivision 24, for the duration of the contract between the taxpaying employer and the person,new text end must, under section 268.044, be reported on the wage detail report under that tax account, and that person must pay any taxes due at the tax rate computed for that account under section 268.051, subdivision 2.

(b) Any workers of the taxpaying employer who are not covered by the contract under paragraph (a) must be reported by the taxpaying employer as a separate unit on the wage detail report under the tax account assigned under paragraph (a). Taxes and any other amounts due on the wages reported by the taxpaying employer under this paragraph may be paid directly by the taxpaying employer.

(c) If the taxpaying employer that contracts with a person under paragraph (a) does not have a tax account at the time of the execution of the contract, an account must be registered for the taxpaying employer under section 268.042 and the new employer tax rate under section 268.051, subdivision 5, must be assigned. The tax account is then assigned to the person as provided for in paragraph (a).

(d) A person that contracts with a taxpaying employer under paragraph (a) must, within 30 calendar days of the execution or termination of a contract, notify the commissioner by electronic transmission, in a format prescribed by the commissioner, of that execution or termination. The taxpaying employer's name, the account number assigned, and any other information required by the commissioner must be provided by that person.

(e) Any contract subject to paragraph (a) must specifically inform the taxpaying employer of the assignment of the tax account under this section and the taxpaying employer's obligation under paragraph (b). If there is a termination of the contract, the tax account is, as of the date of termination, immediately assigned to the taxpaying employer.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment.new text end

Sec. 6.

Subd. 2.

Computation of tax rates; additional assessments.

(a) For each calendar year the commissioner deleted text beginshalldeleted text endnew text begin mustnew text end compute the tax rate of each taxpaying employer that qualifies for an experience rating by adding the base tax rate to the employer's experience rating along with assigning any appropriate additional assessment under paragraph deleted text begin(d)deleted text endnew text begin (c)new text end.

(b) The base tax rate for the calendar year and any additional assessments under this subdivision are determined based upon the amount in the trust fund on March 31 of the prior year as a percentage of total wages paid in covered employment. The base tax rate is:

(1) one-tenth of one percent if the trust fund is equal to or more than 0.75 percent;

(2) two-tenths of one percent if the trust fund is less than 0.75 percent but equal to or more than 0.65 percent;

(3) three-tenths of one percent if the trust fund is less than 0.65 percent but equal to or more than 0.55 percent; deleted text beginordeleted text end

(4) four-tenths of one percent if the trust fund is less than 0.55 percentnew text begin, but has a positive balance; ornew text end

new text begin(5) five-tenths of one percent if the trust fund has a negative balance and is borrowing from the federal unemployment trust fund in order to pay unemployment benefits as provided for under section 268.194, subdivision 6new text end.

(c) deleted text beginThere is a "falling trust fund adjustment" to the base tax rate for the calendar year if the amount in the trust fund on March 31 of the prior year is less than 0.75 percent of total wages paid in covered employment and:deleted text end

deleted text begin(1) the amount in the trust fund on March 31 of the prior year is ten percent or more below the amount in the trust fund on March 31 of the year before that; ordeleted text end

deleted text begin(2) the amount in the trust fund on March 31 of the prior year is greater than the amount in the trust fund on June 30 of that same year.deleted text end

deleted text beginIf a "falling trust fund adjustment" is applicable, then the base tax rate is one-tenth of one percent greater than otherwise provided for under paragraph (b).deleted text end

deleted text begin(d)deleted text end In addition to the base tax rate, there is an additional assessment for the calendar year on the quarterly unemployment taxes due from every taxpaying employer if the amount in the trust fund on March 31 of the prior year is less than 0.55 percent of total wages paid in covered employment. The assessment is as follows:

(1) a five percent assessment if the trust fund is less than 0.55 percent but equal to or more than 0.45 percent;

(2) a ten percent assessment if the trust fund is less than 0.45 percent but equal to or more than 0.35 percent; or

(3) a 14 percent assessment if the trust fund is less than 0.35 percent.

deleted text begin(e)deleted text endnew text begin (d)new text end For the purposes of this subdivision, the trust fund does not include any money borrowed from the federal unemployment trust fund provided for in section 268.194, subdivision 6.

deleted text begin(f)deleted text endnew text begin (e)new text end For the purposes of this subdivision, total wages paid in covered employment are those wages paid to all employees in covered employment during the calendar year before the March 31 date used in paragraph (b).

deleted text begin(g)deleted text endnew text begin (f)new text end The base tax rate and any additional assessments are assessed on all taxpaying employers to cover a portion of the costs to the trust fund for unemployment benefits paid that do not affect any single employer's future experience rating because:

(1) the employer's experience rating is limited by the maximum under subdivision 3, paragraph (b);

(2) the employer has ceased doing business; or

(3) the unemployment benefits paid have been determined not to be used in computing the employer's experience rating under section 268.047, subdivision 2 or 3.

Sec. 7.

Subd. 5.

Tax rate for new employers.

(a) Each new taxpaying employer that does not qualify for an experience rating under subdivision 3, except new employers in a high experience rating industry, must be assigned, for a calendar year, a tax rate the higher of (1) one percent, or (2) the tax rate computed, to the nearest deleted text beginone-hundredthdeleted text endnew text begin 1/100new text end of a percent, by dividing the total amount of unemployment benefits paid all applicants during the 48 calendar months ending on June 30 of the prior calendar year by the total taxable wages of all taxpaying employers during the same period, plus the applicable base tax rate and any additional assessments under subdivision 2, paragraph (d).

(b) Each new taxpaying employer in a high experience rating industry that does not qualify for an experience rating under subdivision 3, must be assigned, for a calendar year, a tax rate new text beginthe higher new text endof deleted text begin8.00 percent,deleted text endnew text begin(1) that assigned under paragraph (a), or (2) the tax rate, computed to the nearest 1/100 of a percent, by dividing the total amount of unemployment benefits paid to all applicants from high experience rating industry employers during the 48 calendar months ending on June 30 of the prior calendar year by the total taxable wages of all high experience rating industry employers during the same period, to a maximum provided for under subdivision 3, paragraph (b), new text endplus the applicable base tax rate and any additional assessments under subdivision 2, paragraph (d).

new text begin(c) new text endAn employer is considered to be in a high experience rating industry if:

(1) the employer is engaged in residential, commercial, or industrial construction, including general contractors;

(2) the employer is engaged in sand, gravel, or limestone mining;

(3) the employer is engaged in the manufacturing of concrete, concrete products, or asphalt; or

(4) the employer is engaged in road building, repair, or resurfacing, including bridge and tunnels and residential and commercial driveways and parking lots.

deleted text begin(c)deleted text endnew text begin(d) new text endThe commissioner deleted text beginshalldeleted text endnew text begin mustnew text end send to the new employer, by mail or electronic transmission, notice of the tax rate assigned. An employer may appeal the assignment of a tax rate in accordance with the procedures in subdivision 6, paragraph (c).

Sec. 8.

Subd. 7.

Tax rate buydown.

(a) Any taxpaying employer that has been assigned a tax rate based upon an experience rating, and has no amounts past due under this chapter, may, upon the payment of an amount equivalent to any portion or all of the unemployment benefits used in computing the experience rating plus a surcharge of 25 percent, obtain a cancellation of unemployment benefits used equal to the payment made, less the surcharge. new text beginThe payment is applied to the most recent unemployment benefits paid that are used in computing the experience rating. new text endUpon the payment, the commissioner deleted text beginshalldeleted text endnew text begin mustnew text end compute a new experience rating for the employer, and compute a new tax rate.

(b) Payments for a tax rate buydown may be made only by electronic payment and must be received within 120 calendar days from the beginning of the calendar year for which the tax rate is effective.

new text begin(c) For calendar years 2011, 2012, and 2013, the surcharge of 25 percent provided for in paragraph (a) does not apply.new text end

Sec. 9.

Subd. 2.

Election by state or political subdivision to be taxpaying employer.

(a) The state or political subdivision may elect to be a taxpaying employer deleted text beginfor any calendar yeardeleted text end if a notice of election is filed deleted text beginwithin 30 calendar days following January 1 of that calendar yeardeleted text end. new text beginThe election is effective at the beginning of the next calendar quarter. new text endUpon election, the state or political subdivision must be assigned the new employer tax rate under section 268.051, subdivision 5, for the calendar year of the election and unless or until it qualifies for an experience rating under section 268.051, subdivision 3.

deleted text begin(b)deleted text end An election is for a minimum period of deleted text begintwodeleted text endnew text begin 24new text end calendar deleted text beginyearsdeleted text endnew text begin monthsnew text end following the effective date of the election and continue unless a notice terminating the election is filed deleted text beginnot later than 30 calendar days before the beginning of the calendar yeardeleted text end. The termination is effective at the beginning of the next calendar deleted text beginyeardeleted text endnew text begin quarternew text end.

deleted text begin(c)deleted text endnew text begin(b) new text endThe method of payments to the trust fund under subdivisions 3 and 4 applies to all taxes paid by or due from the state or political subdivision that elects to be taxpaying employers under this subdivision.

deleted text begin(d)deleted text endnew text begin(c) new text endA notice of election or a notice terminating election must be filed by electronic transmission in a format prescribed by the commissioner.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective November 30, 2010.new text end

Sec. 10.

Subdivision 1.

Election.

(a) Any nonprofit organization that has employees in covered employment must pay taxes on a quarterly basis in accordance with section 268.051 unless it elects to make reimbursements to the trust fund the amount of unemployment benefits charged to its reimbursable account under section 268.047.

The organization may elect to make reimbursements for a period of not less than deleted text begintwodeleted text endnew text begin24new text end calendar deleted text beginyearsdeleted text endnew text begin monthsnew text end beginning with the date that the organization was determined to be an employer with covered employment by filing a notice of election not later than 30 calendar days after the date of the determination.

(b) Any nonprofit organization that makes an election will continue to be liable for reimbursements until it files a notice terminating its election deleted text beginnot later than 30 calendar daysdeleted text end before the beginning of the calendar deleted text beginyeardeleted text endnew text begin quarternew text end the termination is to be effective.

deleted text begin(c)deleted text end A nonprofit organization that has been making reimbursements that files a notice of termination of election must be assigned the new employer tax rate under section 268.051, subdivision 5, deleted text beginfor the calendar year of the termination of election and unless ordeleted text enduntil it qualifies for an experience rating under section 268.051, subdivision 3.

deleted text begin(d)deleted text endnew text begin(c) new text endAny nonprofit organization that has been paying taxes may elect to make reimbursements by filing deleted text beginno less than 30 calendar days before January 1 of any calendar yeardeleted text end a notice of election. new text beginThe election is effective at the beginning of the next calendar quarter. new text endThe election is not terminable by the organization for deleted text beginthat and the nextdeleted text endnew text begin 24new text endcalendar deleted text beginyeardeleted text endnew text begin monthsnew text end.

deleted text begin(e)deleted text endnew text begin(d) new text endThe commissioner may for good cause extend the period that a notice of election, or a notice of termination, must be filed and may permit an election to be retroactive.

deleted text begin(f)deleted text endnew text begin(e) new text endA notice of election or notice terminating election must be filed by electronic transmission in a format prescribed by the commissioner.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective November 30, 2010.new text end

268.07 BENEFIT ACCOUNT.

Subdivision 1.

(a) An application for unemployment benefits may be filed in person, by mail, or by electronic transmission as the commissioner may require. The applicant must be unemployed at the time the application is filed and must provide all requested information in the manner required. If the applicant is not unemployed at the time of the application or fails to provide all requested information, the communication is not considered an application for unemployment benefits.

(b) The commissioner must examine each application for unemployment benefits to determine the base period and the benefit year, and based upon all the covered employment in the base period the commissioner deleted text beginshalldeleted text endnew text begin mustnew text end determine the weekly unemployment benefit amount available, if any, and the maximum amount of unemployment benefits available, if any. The determination, which is a document separate and distinct from a document titled a determination of eligibility or determination of ineligibility issued under section 268.101, must be titled determination of benefit account. A determination of benefit account must be sent to the applicant and all base period employers, by mail or electronic transmission.

(c) If a base period employer did not provide wage detail information for the applicant as required under section 268.044, or provided erroneous information, or wage detail is not yet due and the applicant is using an alternate base period under section 268.035, subdivision 4, paragraph (d), the commissioner may accept an applicant certification of wage credits, based upon the applicant's records, and issue a determination of benefit account.

(d) An employer must provide wage detail information on an applicant within five calendar days of request by the commissioner, in a manner and format requested, when:

(1) the applicant is using an alternate base period under section 268.035, subdivision 4, paragraph (d); and

(2) wage detail under section 268.044 is not yet required to have been filed by the employer.

(e) The commissioner may, at any time within 24 months from the establishment of a benefit account, reconsider any determination of benefit account and make an amended determination if the commissioner finds that the new text beginwage credits listed in the new text enddetermination deleted text beginwasdeleted text endnew text begin werenew text end incorrect for any reason. An amended determination of benefit account must be promptly sent to the applicant and all base period employers, by mail or electronic transmission. This subdivision does not apply to documents titled determinations of eligibility or determinations of ineligibility issued under section 268.101.

(f) If an amended determination of benefit account reduces the weekly unemployment benefit amount or maximum amount of unemployment benefits available, any unemployment benefits that have been paid greater than the applicant was entitled is considered an overpayment of unemployment benefits. A determination or amended determination issued under this section that results in an overpayment of unemployment benefits must set out the amount of the overpayment and the requirement under section 268.18, subdivision 1, that the overpaid unemployment benefits must be repaid.

new text begin(2)new text end using the secondary base period under section 268.035, subdivision 4, paragraph (b), an applicant must have wage credits in the high quarter of $1,000 or more.

new text begin(b) To establish a new benefit account within 52 calendar weeks following the expiration of the benefit year on a prior benefit account, an applicant must meet the requirements of paragraph (a) and must have performed services in covered employment in a calendar quarter that started after the effective date of the prior benefit account. The wage credits for those services must be at least eight times the weekly benefit amount on the prior benefit account. One of the reasons for this paragraph is to prevent an applicant from establishing a second benefit account as a result of one loss of employment.new text end

new text beginSubd. 2a.new text end

deleted text begin(b)deleted text endnew text begin(a) new text endIf an applicant has established a benefit accountnew text begin under subdivision 2new text end, the weekly unemployment benefit amount available during the new text beginapplicant's new text endbenefit year is the higher of:

(1) 50 percent of the applicant's average weekly wage during the base period, to a maximum of 66-2/3 percent of the state's average weekly wage; or

(2) 50 percent of the applicant's average weekly wage during the high quarter, to a maximum of 43 percent of the state's average weekly wage.

The applicant's average weekly wage under clause (1) is computed by dividing the total wage credits by 52. The applicant's average weekly wage under clause (2) is computed by dividing the high quarter wage credits by 13.

deleted text begin(c)deleted text endnew text begin (b)new text end The state's maximum weekly benefit amount, computed in accordance with section 268.035, subdivision 23, applies to a benefit account established effective on or after the last Sunday in October. Once established, an applicant's weekly unemployment benefit amount is not affected by the last Sunday in October change in the state's maximum weekly unemployment benefit amount.

deleted text begin(d)deleted text endnew text begin (c)new text end The maximum amount of unemployment benefits available on any benefit account is the lower of:

(1) 33-1/3 percent of the applicant's total wage credits; or

(2) 26 times the applicant's weekly unemployment benefit amount.

deleted text beginSubd. 3.deleted text end

deleted text beginTo establish a second benefit account following the expiration of a benefit year on a prior benefit account, an applicant must meet the requirements of subdivision 2 and must have performed services in covered employment after the effective date of the prior benefit account. The wages paid for those services must be at least eight times the weekly unemployment benefit amount of the prior benefit account. Part of the reason for this subdivision is to prevent an applicant from establishing more than one benefit account as a result of one loss of employment.deleted text end

Subd. 3a.

Right of appeal.

(a) A determination or amended determination of benefit account is final unless an applicant or base period employer within 20 calendar days after the sending of the determination or amended determination files an appeal. Every determination or amended determination of benefit account must contain a prominent statement indicating in clear language the consequences of not appealing. Proceedings on the appeal are conducted in accordance with section 268.105.

(b) Any applicant or base period employer may appeal from a determination or amended determination of benefit account on the issue of whether services performed constitute employment deleted text beginanddeleted text endnew text begin, whether the employment is considerednew text end covered employmentnew text begin, and whether money paid constitutes wagesnew text end. Proceedings on the appeal are conducted in accordance with section 268.105.

Subd. 3b.

Limitations on applications and benefit accounts.

(a) An application for unemployment benefits is effective the Sunday of the calendar week that the application was filed. An application for unemployment benefits may be backdated one calendar week before the Sunday of the week the application was actually filed if the applicant requests the backdating at the time the application is filed. An application may be backdated only if the applicant had no employment during the period of the backdating. If an individual attempted to file an application for unemployment benefits, but was prevented from filing an application by the department, the application is effective the Sunday of the calendar week the individual first attempted to file an application.

(b) A benefit account established under subdivision 2 is effective the date the application for unemployment benefits was effective.

(c) A benefit account, once established, may later be withdrawn only if:

(1) the applicant has not been paid any unemployment benefits on that benefit account; and

(2) a new application for unemployment benefits is filed and a new benefit account is established at the time of the withdrawal.

A determination or amended determination of eligibility or ineligibility issued under section 268.101, that was sent before the withdrawal of the benefit account, remains in effect and is not voided by the withdrawal of the benefit account. A determination of ineligibility requiring subsequent earnings to satisfy the period of ineligibility under section 268.095, subdivision 10, applies to the weekly unemployment benefit amount on the new benefit account.

(d) An application for unemployment benefits is not allowed before the Sunday following the expiration of the benefit year on a prior benefit account. Except as allowed under paragraph (c), an applicant may establish only one benefit account each 52 calendar weeks.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for benefit accounts filed effective on or after the first Sunday following final enactment.new text end

(4) the applicant was available for suitable employment as defined in subdivision 15. The applicant's weekly unemployment benefit amount is reduced one-fifth for each day the applicant is unavailable for suitable employment. This clause does not apply to an applicant who is in reemployment assistance training, or each day the applicant is on jury duty or serving as an election judge;

(5) the applicant was actively seeking suitable employment as defined in subdivision 16. This clause does not apply to an applicant who is in reemployment assistance training or who was on jury duty throughout the week;

(6) the applicant has served a nonpayable deleted text beginwaitingdeleted text end period of one week that the applicant is otherwise entitled to some amount of unemployment benefits. This clause does not apply if the applicant would have been entitled to federal disaster unemployment assistance because of a disaster in Minnesota, but for the applicant's establishment of a benefit account under section 268.07; and

(7) the applicant has been participating in reemployment assistance services, such as job search and resume writing classes, if the applicant has been determined in need of reemployment assistance services by the commissioner, unless the applicant has good cause for failing to participate.

Sec. 13.

Subd. 9.

Business owners.

new text begin(a)new text end Wage credits from an employer may not be used for unemployment benefit purposes by any applicant who:

(1) individually, jointly, or in combination with the applicant's spouse, parent, or child owns or controls directly or indirectly 25 percent or more interest in the employer; or

(2) is the spouse, parent, or deleted text beginminordeleted text end child of any individual who owns or controls directly or indirectly 25 percent or more interest in the employer.

This subdivision is effective when the applicant has been paid five times the applicant's weekly unemployment benefit amount in the current benefit year. This subdivision does not apply if the applicant had wages paidnew text begin in covered employmentnew text end of $7,500 or more from the employer covered by this subdivision in each of the 16 calendar quarters prior to the effective date of the benefit accountnew text begin and all taxes due on those wages have been paidnew text end.

new text begin(b) An officer of a taxpaying employer referred to in section 268.046, subdivision 1, is subject to the limitations of this subdivision.new text end

Sec. 14.

Subd. 16.

Actively seeking suitable employment defined.

(a) "Actively seeking suitable employment" means those reasonable, diligent efforts an individual in similar circumstances would make if genuinely interested in obtaining suitable employment under the existing conditions in the labor market area. Limiting the search to positions that are not available or are above the applicant's training, experience, and qualifications is not "actively seeking suitable employment."

(b) To be considered "actively seeking suitable employment" an applicant must, when reasonable, contact those employers from whom the applicant was laid off because of lack of work and request suitable employment.

(c) If reasonable prospects of suitable employment in the applicant's usual or customary occupation do not exist, the applicant must actively seek other suitable employment to be considered "actively seeking suitable employment." This applies to an applicant who is seasonally unemployed.

(d)new text begin Actively seeking a suitable job assignment or other employment with a staffing service is considered actively seeking suitable employment.new text end

new text begin(e) new text endAn applicant who is seeking employment only through a union is considered actively seeking suitable employment if the applicant is in an occupation where hiring in that locality is done through the union. If the applicant is a union member who is restricted to obtaining employment among signatory contractors in the construction industry, seeking employment only with those signatory contractors is considered actively seeking employment. The applicant must be a union member in good standing, registered with the union for employment, and in compliance with other union rules to be considered "actively seeking suitable employment."

Sec. 15.

Subd. 2.

Quit defined.

(a) A quit from employment occurs when the decision to end the employment was, at the time the employment ended, the employee's.

(b) An employee who has been notified that the employee will be discharged in the future, who chooses to end the employment while employment in any capacity is still available, is considered to have quit the employment.

(c) An employee who seeks to withdraw a previously submitted notice of quitting is considered to have quit the employment if the employer does not agree that the notice may be withdrawn.

(d) An applicant who, within five calendar days after completion of a suitable deleted text begintemporarydeleted text end job assignment from a staffing service deleted text beginemployerdeleted text end, (1) fails without good cause to affirmatively request an additional new text beginsuitable new text endjob assignment, (2) refuses without good cause an additional suitable job assignment offered, or (3) accepts employment with the client of the staffing service, is considered to have quit employment with the staffing service. Accepting employment with the client of the staffing service meets the requirements of the exception to ineligibility under subdivision 1, clause (2).

This paragraph applies only if, at the time of beginning of employment with the staffing service deleted text beginemployerdeleted text end, the applicant signed and was provided a copy of a separate document written in clear and concise language that informed the applicant of this paragraph and that unemployment benefits may be affected.

For purposes of this paragraph, "good cause" is a reason that is significant and would compel an average, reasonable worker, who would otherwise want an additional deleted text begintemporarydeleted text endnew text begin suitable new text end job assignment with the staffing service deleted text beginemployerdeleted text end, (1) to fail to contact the staffing service deleted text beginemployerdeleted text end, or (2) to refuse an offered assignment.

deleted text beginFor purposes of this paragraph, a "staffing service employer" is an employer whose business involves employing individuals directly for the purpose of furnishing temporary job assignment workers to clients of the staffing service.deleted text end

Sec. 16.

Subd. 5.

Discharge defined.

(a) A discharge from employment occurs when any words or actions by an employer would lead a reasonable employee to believe that the employer will no longer allow the employee to work for the employer in any capacity. A layoff because of lack of work is considered a discharge. A suspension from employment without pay of more than 30 calendar days is considered a discharge.

(b) An employee who gives notice of intention to quit the employment and is not allowed by the employer to work the entire notice period is considered discharged from the employment as of the date the employer will no longer allow the employee to work. If the discharge occurs within 30 calendar days before the intended date of quitting, then, as of the intended date of quitting, the separation from employment is considered a quit from employment subject to subdivision 1.

new text begin(c) The end of a job assignment with the client of a staffing service is considered a discharge from employment with the staffing service unless section 268.095, subdivision 2, paragraph (d), applies.new text end

Sec. 17.

Subd. 6.

Employment misconduct defined.

(a) Employment misconduct means any intentional, negligent, or indifferent conduct, on the job or off the job that displays clearly:

(1) a serious violation of the standards of behavior the employer has the right to reasonably expect of the employee; or

(2) a substantial lack of concern for the employment.

(b) Regardless of paragraph (a), the following is not employment misconduct:

(1) conduct that was a consequence of the applicant's mental illness or impairment;

(2) new text beginconduct that was a consequence of the applicant's new text endinefficiency or inadvertence;

(3) simple unsatisfactory conduct;

(4) conduct an average reasonable employee would have engaged in under the circumstances;

(5) deleted text beginpoor performance because ofdeleted text endnew text begin conduct that was a consequence of the applicant's new text end inability or incapacity;

(6) good faith errors in judgment if judgment was required;

(7) absence because of illness or injury of the applicant, with proper notice to the employer;

(8) absence, with proper notice to the employer, in order to provide necessary care because of the illness, injury, or disability of an immediate family member of the applicant;

(9) conduct that was a deleted text begindirect resultdeleted text endnew text begin consequencenew text end of the applicant's chemical dependency, unless the applicant was previously diagnosed chemically dependent or had treatment for chemical dependency, and since that diagnosis or treatment has failed to make consistent efforts to control the chemical dependency; or

(10) conduct that was a deleted text beginresultdeleted text endnew text begin consequencenew text end of the applicant, or an immediate family member of the applicant, being a victim of domestic abuse as defined under section 518B.01. Domestic abuse must be shown as provided for in subdivision 1, clause (9).

(c) Regardless of paragraph (b), clause (9), conduct in violation of sections 169A.20, 169A.31, or 169A.50 to 169A.53 that interferes with or adversely affects the employment is employment misconduct.

(d) If the conduct for which the applicant was discharged involved only a single incident, that is an important fact that must be considered in deciding whether the conduct rises to the level of employment misconduct under paragraph (a).

(e) The definition of employment misconduct provided by this subdivision is exclusive and no other definition applies.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective for determinations under section 268.101, subdivision 2, and appeal decisions under section 268.105, subdivision 1, issued on and after the Sunday following final enactment.new text end

Sec. 18.

Minnesota Statutes 2008, section 268.101, is amended by adding a subdivision to read:

new text beginSubd. 2a.new text end

new text beginTelephone number.new text end

new text beginEvery determination issued under subdivision 2 must include a prominently displayed telephone number that an applicant or involved employer can call to speak with an unemployment insurance specialist and obtain further explanation about the determination and have any questions answered. The specialist must, when appropriate, issue an amended determination as provided for in subdivision 4. The listed telephone number must be unique to a specialized call group trained to handle calls involving determinations.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective October 3, 2010, and expires September 30, 2012.new text end

Sec. 19.

Subdivision 1.

Evidentiary hearing by unemployment law judge.

(a) Upon a timely appeal having been filed, the department must send, by mail or electronic transmission, a notice of appeal to all involved parties that an appeal has been filed, and that a de novo due process evidentiary hearing will be scheduled. The notice must set out the parties' rights and responsibilities regarding the hearing. The notice must explain that the facts will be determined by the unemployment law judge based upon a preponderance of the evidence. The notice must explain in clear and simple language the meaning of the term "preponderance of the evidence." The department must set a time and place for a de novo due process evidentiary hearing and send notice to any involved applicant and any involved employer, by mail or electronic transmission, not less than ten calendar days before the date of the hearing.

(b) The evidentiary hearing is conducted by an unemployment law judge as an evidence gathering inquiry. At the beginning of the hearing the unemployment law judge must fully explain how the hearing will be conducted, that the applicant has the right to request that the hearing be rescheduled so that documents or witnesses can be subpoenaed, that the facts will be determined based on a preponderance of the evidence, and, in clear and simple language, the meaning of the term "preponderance of the evidence." The unemployment law judge must ensure that all relevant facts are clearly and fully developed. The department may adopt rules on evidentiary hearings. The rules need not conform to common law or statutory rules of evidence and other technical rules of procedure. The department has discretion regarding the method by which the evidentiary hearing is conducted. A report of any employee of the department, except a determination, made in the regular course of the employee's duties, is competent evidence of the facts contained in it. An affidavit or written statement based on personal knowledge and signed under penalty of perjury is competent evidence of the facts contained in it; however, the veracity of statements contained within the document or the credibility of the witness making the statement may be disputed with other documents or testimony and production of such documents or testimony may be compelled by subpoena.

(c) After the conclusion of the hearing, upon the evidence obtained, the unemployment law judge must make findings of fact and decision and send those, by mail or electronic transmission, to all involved parties. When the credibility of an involved party or witness testifying in an evidentiary hearing has a significant effect on the outcome of a decision, the unemployment law judge must set out the reason for crediting or discrediting that testimony. The unemployment law judge's decision is final unless a request for reconsideration is filed under subdivision 2.

(d) Regardless of paragraph (c), if the appealing party fails to participate in the evidentiary hearing, the unemployment law judge has the discretion to dismiss the appeal by summary order. By failing to participate, the appealing party is considered to have failed to exhaust available administrative remedies unless the appealing party files a request for reconsideration under subdivision 2 and establishes good cause for failing to participate in the evidentiary hearing under subdivision 2, paragraph (d). Submission of a written statement does not constitute participation. The applicant must participate personally and appearance solely by a representative does not constitute participation.

(e) Only employees of the department who are attorneys licensed to practice law in Minnesota may serve as the chief unemployment law judge, senior unemployment law judges who are supervisors, or unemployment law judges. The commissioner must designate a chief unemployment law judge. The chief unemployment law judge may transfer to another unemployment law judge any proceedings pending before an unemployment law judge.

new text begin(f) A full-time unemployment law judge must be paid a salary within a range directly tied to the salary set under section 15A.083, subdivision 7, for a workers' compensation judge. The salary paid within that range to any single unemployment law judge is based on experience and performance.new text end

Sec. 20.

Subdivision 1.

Shared work agreement requirements.

(a) An employer may submit a proposed shared work plan for an employee group to the commissioner for approval in a manner and format set by the commissioner. The proposed agreement must include:

(1) a certified statement that the normal weekly hours of work of all of the proposed participating employees were full time but are now reduced, or will be reduced, with a corresponding reduction in pay, in order to prevent layoffs;

(2) the name and Social Security number of each participating employee;

(3) a certified statement of when each participating employee was first hired by the employer, which must be at least one year before the proposed agreement is submitted;

(4) the hours of work each participating employee will work each week for the duration of the agreement, which must be at least 20 hours and no more than 32 hours per week, except that the agreement may provide for a uniform vacation shutdown of up to two weeks;

(5) the proposed duration of the agreement, which must be at least two months and not more than one year, although an agreement may be extended for up to an additional year upon approval of the commissioner;

(6) a starting date beginning on a Sunday at least 15 calendar days after the date the proposed agreement is submitted; and

(7) a signature of an owner or officer of the employer who is listed as an owner or officer on the employer's account under section 268.045.

(b) An agreement may not be approved for an employer that:

(1) has any unemployment tax or reimbursements, including any interest, fees, or penalties, due but unpaid;new text begin ornew text end

Sec. 21.

Subdivision 1.

Administrative penalties.

(a) The commissioner shall penalize an employer if that employer or any employee, officer, or agent of that employer, is in collusion with any applicant for the purpose of assisting the applicant to receive unemployment benefits fraudulently. The penalty is $500 or the amount of unemployment benefits determined to be overpaid, whichever is greater.

(b) The commissioner shall penalize an employer if that employer or any employee, officer, or agent of that employer (1) made a false statement or representation knowing it to be false, (2) made a false statement or representation without a good faith belief as to correctness of the statement or representation, deleted text beginordeleted text end (3) knowingly failed to disclose a material factdeleted text begin;deleted text endnew text begin, or (4) made an offer of employment to an applicant when, in fact, the employer had no employment available, new text end but only if the employer's action:

(i) was taken to prevent or reduce the payment of unemployment benefits to any applicant;

(ii) was taken to reduce or avoid any payment required from an employer under this chapter or section 116L.20; or

(iii) caused an overpayment of unemployment benefits to an applicant.

The penalty is $500, or 50 percent of the overpaid or reduced unemployment benefits or payment required, whichever is greater.

(c) The commissioner shall penalize an employer if that employer failed or refused to honor a subpoena issued under section 268.105, subdivision 4, or section 268.188. The penalty is $500 and any costs of enforcing the subpoena, including attorney fees.

(d) Penalties under this subdivision are in addition to any other penalties and subject to the same collection procedures that apply to past due taxes. Penalties must be paid within 30 calendar days of assessment and credited to the contingent account.

(e) The assessment of the penalty is final unless the employer files an appeal within 20 calendar days after the sending of notice of the penalty to the employer by mail or electronic transmission. Proceedings on the appeal are conducted in accordance with section 268.105.

new text beginSubdivision 1.new text end

new text beginEligibility.new text end

new text begin(a) Special state extended unemployment insurance benefits are payable under this section to an applicant who does not qualify for extended unemployment insurance benefits under Minnesota Statutes, section 268.115, solely because the applicant does not have wage credits of at least 40 times the applicant's weekly benefit amount.new text end

new text begin(b) Except as provided in paragraph (a), all requirements for extended unemployment benefits under Minnesota Statutes, section 268.115, and all other requirements of Minnesota Statutes, chapter 268, must be met in order for an applicant to be eligible for special state extended unemployment insurance benefits under this section.new text end

new text begin(c) Except as provided for in paragraph (d), special state extended unemployment insurance benefits are payable in the same amounts, for the same duration, and for the same time period as provided for under Minnesota Statutes, section 268.115.new text end

new text begin(d) The maximum amount of special state extended unemployment insurance benefits under this section available to an applicant is reduced by the amount of special state emergency unemployment insurance benefits paid the applicant under Laws 2009, chapter 1, section 2.new text end

new text beginSubd. 2.new text end

new text beginPayment from trust fund.new text end

new text beginSpecial state extended unemployment insurance benefits are payable from the Minnesota unemployment insurance trust fund. Special state extended unemployment insurance benefits must not be used in computing the future unemployment insurance tax rate of a taxpaying employer, and they must not be charged to the reimbursing account of government or nonprofit employers.new text end

new text beginSubd. 3.new text end

new text beginExpiration.new text end

new text beginThis section expires on March 26, 2011, and no benefits may be paid under this section for a week beginning after that date.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective June 30, 2010.new text end

Sec. 23. new text beginLEAVES OF ABSENCE.new text end

new text beginMinnesota Statutes, section 268.088, applies to leaves of absence taken by workers at the New Ulm location of 3M during 2009. The department must, notwithstanding any prior determination or appeal decision, redetermine an applicant's entitlement to unemployment benefits under this section.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment.new text end

new text beginNotwithstanding the June 30, 2010, expiration date of Laws 2009, chapter 1, section 2, subdivision 4, if an applicant has filed for special state emergency unemployment compensation under that law for a week beginning prior to June 30, 2010, but has not exhausted the maximum amount available to the applicant under that law, the applicant may continue to receive special state emergency unemployment compensation under that law up to the applicant's determined maximum under that law. This section expires March 26, 2011, and no benefits may be paid pursuant to this section for a week beginning after that date.new text end

Sec. 25. new text beginNEW BENEFIT ACCOUNTS.new text end

new text beginIf an applicant establishes a new benefit account under Minnesota Statutes, section 268.07, subdivision 2, paragraph (b), within 39 weeks of the expiration of the benefit year on a prior benefit account, notwithstanding Minnesota Statutes, section 268.07, subdivision 2a, paragraph (a), the weekly benefit amount on the new benefit account will not be less than 80 percent of the weekly benefit amount on the prior benefit account. new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section applies to benefit accounts effective on or after the first Sunday following enactment and expires the earlier of: (1) the effective date of any federal legislation allowing an applicant to continue to collect federal emergency unemployment compensation, notwithstanding the applicant qualifying for a new regular state benefit account under Minnesota Statutes, section 268.07, subdivision 2, paragraph (b); or (2) June 30, 2011.new text end

new text beginAn individual who received unemployment benefits in 2009 shall not be determined overpaid under Minnesota Statutes, section 268.18, subdivision 1, because of receipt of vacation pay in 2009 which was earned in 2008 under a collective bargaining agreement with an employer located in Hibbing that had layoffs in May 2009 of over 400 workers.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment.new text end

Sec. 27. new text beginREVISOR'S INSTRUCTION.new text end

new text beginThe revisor of statutes shall renumber each section of Minnesota Statutes listed in column A with the number in column B.new text end

new text beginColumn Anew text end

new text beginColumn Bnew text end

new text begin268.035, subdivision 12bnew text end

new text begin268.035, subdivision 12dnew text end

new text begin268.035, subdivision 21anew text end

new text begin268.035, subdivision 21cnew text end

new text begin268.035, subdivision 20anew text end

new text begin268.035, subdivision 21bnew text end

new text begin268.035, subdivision 25anew text end

new text begin268.035, subdivision 25cnew text end

ARTICLE 3

LABOR STANDARDS AND WAGES; LICENSING AND FEES

Section 1.

Subd. 5.

Application.

To obtain an independent contractor exemption certificate, the individual must submit, in the manner prescribed by the commissioner, a complete application and the certificate fee required under subdivision 14.

(a) A complete application must include all of the following information:

(1) the individual's full name;

(2) the individual's residence address and telephone number;

(3) the individual's business name, address, and telephone number;

(4) the services for which the individual is seeking an independent contractor exemption certificate;

(5) the individual's Social Security number;

(6) the individual's or the individual's business federal employer identification number, if a number has been issued to the individual or the individual's business;

(7) any information or documentation that the commissioner requires by rule that will assist the department in determining whether to grant or deny the individual's application; and

(8) the individual's sworn statement that the individual meets all of the following conditions:

(i) maintains a separate business with the individual's own office, equipment, materials, and other facilities;

(ii) holds or has applied for a federal employer identification number or has filed business or self-employment income tax returns with the federal Internal Revenue Service if the person has performed services in the previous year for which the individual is seeking the independent contractor exemption certificate;

(iii) operates under contracts to perform specific services for specific amounts of money and under which the individual controls the means of performing the services;

(iv) incurs the main expenses related to the service that the individual performs under contract;

(v) is responsible for the satisfactory completion of services that the individual contracts to perform and is liable for a failure to complete the service;

(vi) receives compensation for service performed under a contract on a commission or per-job or competitive bid basis and not on any other basis;

(vii) may realize a profit or suffer a loss under contracts to perform service;

(viii) has continuing or recurring business liabilities or obligations; and

(ix) the success or failure of the individual's business depends on the relationship of business receipts to expenditures.

(b) Individuals who are applying for or renewing a residential building contractor or residential remodeler license under sections 326B.197, 326B.802, 326B.805, 326B.81, 326B.815, 326B.821 to 326B.86, 326B.87 to 326B.885, and 327B.041, and any rules promulgated pursuant thereto, may simultaneously apply for or renew an independent contractor exemption certificate. The commissioner shall create an application form that allows for the simultaneous application for both a residential building contractor or residential remodeler license and an independent contractor exemption certificate. If individuals simultaneously apply for or renew a residential building contractor or residential remodeler license and an independent contractor exemption certificate using the form created by the commissioner, individuals shall only be required to provide, in addition to the information required by section 326B.83 and rules promulgated pursuant thereto, the sworn statement required by paragraph (a), clause (8), and any additional information required by this subdivision that is not also required by section 326B.83 and any rules promulgated thereto. When individuals submit a simultaneous application on the form created by the commissioner for both a residential building contractor or residential remodeler license and an independent contractor exemption certificate, the application fee shall be $150. An independent contractor exemption certificate that is in effect before March 1, 2009, shall remain in effect until March 1, deleted text begin2011deleted text endnew text begin 2013new text end, unless revoked by the commissioner or canceled by the individual.

(c) Within 30 days of receiving a complete application and the certificate fee, the commissioner must either grant or deny the application. The commissioner may deny an application for an independent contractor exemption certificate if the individual has not submitted a complete application and certificate fee or if the individual does not meet all of the conditions for holding the independent contractor exemption certificate. The commissioner may revoke an independent contractor exemption certificate if the commissioner determines that the individual no longer meets all of the conditions for holding the independent contractor exemption certificate, commits any of the actions set out in subdivision 7, or fails to cooperate with a department investigation into the continued validity of the individual's certificate. Once issued, an independent contractor exemption certificate remains in effect for deleted text begintwodeleted text endnew text beginfour new text endyears unless:

(1) revoked by the commissioner; or

(2) canceled by the individual.

(d) If the department denies an individual's original or renewal application for an independent contractor exemption certificate or revokes an independent contractor exemption certificate, the commissioner shall issue to the individual an order denying or revoking the certificate. The commissioner may issue an administrative penalty order to an individual or person who commits any of the actions set out in subdivision 7.

(e) An individual or person to whom the commissioner issues an order under paragraph (d) shall have 30 days after service of the order to request a hearing. The request for hearing must be in writing and must be served on or faxed to the commissioner at the address or facsimile number specified in the order by the 30th day after service of the order. If the individual does not request a hearing or if the individual's request for a hearing is not served on or faxed to the commissioner by the 30th day after service of the order, the order shall become a final order of the commissioner and will not be subject to review by any court or agency. The date on which a request for hearing is served by mail shall be the postmark date on the envelope in which the request for hearing is mailed. If the individual serves or faxes a timely request for hearing, the hearing shall be a contested case hearing and shall be held in accordance with chapter 14.

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective retroactively from July 1, 2008.new text end

Sec. 2.

new text begin[184B.20] INFLATABLE AMUSEMENT EQUIPMENT.new text end

new text beginSubdivision 1.new text end

new text beginDefinitions.new text end

new text begin(a) For purposes of this section, the terms defined in this subdivision have the meanings given.new text end

new text begin(b) "Commercial use" means regular use of an inflatable for profit by an owner at a permanently located facility:new text end

new text begin(1) to which the general public is invited; ornew text end

new text begin(2) which the owner makes available at that facility for private parties or other events.new text end

new text begin"Commercial use" does not include use of an inflatable (i) at a carnival, festival, fair, private party, or similar venue at a location other than the permanently located facility, or (ii) at a facility where the use of the inflatable is incidental to the primary use of the facility.new text end

new text begin(c) "Inflatable" means an amusement device, used to bounce or otherwise play on, that incorporates a structural and mechanical system and employs a high-strength fabric or film that achieves its strength, shape, and stability by tensioning from internal air pressure.new text end

new text begin(d) "Owner" means a person who owns, leases as lessee, or controls the operation of an inflatable for commercial use.new text end

new text begin(e) "Person" has the meaning given in section 302A.011, subdivision 22.new text end

new text begin(f) "Supervisor" means an individual stationed within close proximity to an inflatable during its use, for the purpose of supervising its safe use.new text end

new text begin(g) "Trained" means that an individual has received instruction in how to supervise the safe use of inflatables in accordance with industry and ASTM standards.new text end

new text beginSubd. 2.new text end

new text beginProhibition.new text end

new text beginNo owner shall provide an inflatable for commercial use in this state by others unless the owner complies with this section.new text end

new text beginSubd. 3.new text end

new text beginProtection against injuries from falls.new text end

new text beginAn inflatable that is in commercial use must be placed in a manner that complies with ASTM Standard F 2374.07, adopted by the American Society for Testing and Materials, including any future updates to that standard.new text end

new text beginSubd. 4.new text end

new text beginSupervision by trained person required.new text end

new text beginNo owner of an inflatable shall allow commercial use of the inflatable unless a trained supervisor is present in close proximity to the inflatable and is actively supervising its use. The ratio of supervisors to inflatables must comply with ASTM Standard F 2374.07, as referenced under subdivision 3.new text end

new text beginSubd. 5.new text end

new text beginInsurance required; waiver of liability limited.new text end

new text begin(a) An owner of an inflatable that is subject to subdivision 2 shall maintain liability insurance covering liability for a death or injury resulting from commercial use of the inflatable with limits of no less than $1,000,000 per occurrence and $2,000,000 aggregate per year. The insurance shall also include medical payments coverage of no less than $5,000 per occurrence, which may be limited to injuries incurred while using an inflatable, including getting on or off of the inflatable. The insurance must be issued by an insurance company authorized to issue the coverage in this state by the commissioner of commerce, and must be kept in force during the entire period of registration. In the event of a policy cancellation, the insurer will send written notice to the commissioner of labor and industry at the same time that a cancellation request is received from or a notice is sent to the insured. new text end

new text begin(b) A waiver of liability signed by or on behalf of a minor for injuries arising out of the negligence of the owner or the owner's employee or designee is void.new text end

new text beginSubd. 6.new text end

new text beginRegistration required.new text end

new text beginAn owner of an inflatable that is subject to subdivision 2 must obtain and maintain a current registration with the commissioner of labor and industry. The registration information must include the name, address, telephone number, and e-mail address of the owner, the street address of each facility at which the owner regularly provides inflatables for commercial use in this state by others, and a current insurance certificate of coverage proving full compliance with subdivision 5. The commissioner shall issue and renew a certificate of registration only to owners who comply with this section. The commissioner shall charge a registration fee of $100 for a two-year registration designed to cover the cost of registration and enforcement. Fee receipts must be deposited in the state treasury and credited to the construction code fund. The registration certificate shall be issued and renewed for a two-year period. The registrant shall promptly notify the commissioner in writing of any changes in the registration information required in this subdivision.new text end

new text beginSubd. 7.new text end

new text beginEnforcement.new text end

new text beginThe commissioner of labor and industry shall enforce this section and may use for that purpose section 326B.082 and any powers otherwise available to the commissioner for enforcement purposes, including suspension or revocation of the person's registration and assessment of fines.new text end

new text beginEFFECTIVE DATE.new text end

new text beginThis section is effective August 1, 2010.new text end

Sec. 3.

new text begin[326B.091] DEFINITIONS.new text end

new text beginSubdivision 1.new text end

new text beginApplicability.new text end

new text beginFor purposes of sections 326B.091 to 326B.098, the terms defined in this section have the meanings given them.new text end

new text beginSubd. 2.new text end

new text beginApplicant.new text end

new text begin"Applicant" means a person who has submitted to the department an application for a license.new text end

new text beginSubd. 3.new text end

new text beginLicense.new text end

new text begin"License" means any registration, certification, or other form of approval authorized by chapters 326B and 327B to be issued by the commissioner or department as a condition of doing business or conducting a trade, profession, or occupation in Minnesota. License includes specifically but not exclusively an authorization issued by the commissioner or department: to perform electrical work, plumbing or water conditioning work, high pressure piping work, or residential building work of a residential contractor, residential remodeler, or residential roofer; to install manufactured housing; to serve as a building official; or to operate a boiler or boat.new text end

new text beginSubd. 4.new text end

new text beginLicensee.new text end

new text begin"Licensee" means the person named on the license as the person authorized to do business or conduct the trade, profession, or occupation in Minnesota.new text end

new text beginSubd. 5.new text end

new text beginNotification date.new text end

new text begin"Notification date" means the date of the written notification from the department to an applicant that the applicant is qualified to take the examination required for licensure.new text end

new text beginSubd. 6.new text end

new text beginRenewal deadline.new text end

new text begin"Renewal deadline," when used with respect to a license, means 30 days before the date that the license expires.new text end

Sec. 4.

new text begin[326B.092] FEES.new text end

new text beginSubdivision 1.new text end

new text beginLicenses requiring examination administered by commissioner.new text end

new text begin(a) If the applicant for a license must pass an examination administered by the commissioner in order to obtain the license, then the application for the initial license must be accompanied by an application and examination fee of $50, which is separate from the license fee. The license fee is due after the applicant passes the examination and before the license is issued.new text end

new text begin(b) If the applicant for a Minnesota license holds a license in another state and is seeking Minnesota licensure without examination based on reciprocity, then the application for the Minnesota license must be accompanied by the application and examination fee of $50, which is separate from the license fee. If the commissioner approves the application, then the license fee is due before the license is issued.new text end

new text beginSubd. 2.new text end

new text beginLicenses not requiring examination administered by commissioner.new text end

new text beginIf the applicant for a license is not required to pass an examination in order to obtain the license, or is required to pass an examination that is not administered by the commissioner, then the license fee must accompany the application for the license. If the application is for a license issued under sections 326B.802 to 326B.885 and is not an application for license renewal, then the contractor recovery fund fee required under section 326B.89, subdivision 3, is due after the department has determined that the applicant meets the qualifications for licensing and before the license is issued.new text end

new text beginSubd. 3.new text end

new text beginLate fee.new text end

new text beginThe department must receive a complete application for license renewal by the renewal deadline but not more than 90 days before the renewal deadline. If the department receives a renewal application after the expiration of the license, then the renewal application must be accompanied by a late fee equal to one-half of the license renewal fee; except that, for the purpose of calculating the late fee only, the license renewal fee shall not include any contractor recovery fund fee required by section 326B.89, subdivision 3.new text end

new text beginSubd. 4.new text end

new text beginLapsed licensed fee.new text end

new text beginIf the department receives a renewal application within two years after expiration of the license, the renewal application must be accompanied by all license renewal fees to cover the period that the license was expired, plus the late fee described in subdivision 3 and the license renewal fee for the current renewal period.new text end

new text beginSubd. 5.new text end

new text beginInsufficient fees.new text end

new text beginIf the applicant does not include all required fees with the application, then the application will be incomplete and the department will notify the applicant of the amount of the deficiency.new text end

new text beginSubd. 6.new text end

new text beginFees nonrefundable.new text end

new text beginApplication and examination fees, license fees, license renewal fees, and late fees are nonrefundable except for:new text end

new text begin(1) license renewal fees received more than two years after expiration of the license, as described in section 326B.094, subdivision 2;new text end

new text begin(2) any overpayment of fees; andnew text end

new text begin(3) if the license is not renewed, the contractor recovery fund fee and any additional assessment paid under subdivision 7, paragraph (e).new text end

new text beginSubd. 7.new text end

new text beginLicense fees and license renewal fees.new text end

new text begin(a) The license fee for each license except a renewed license shall be the base license fee plus any applicable board fee, as set forth in this subdivision. The license renewal fee for each renewed license is the base license fee plus any applicable board fee, continuing education fee, and contractor recovery fund fee and additional assessment, as set forth in this subdivision.new text end

new text begin(b) For purposes of this section, "license duration" means the number of years for which the license is issued except that:new text end

new text begin(1) if the initial license is not issued for a whole number of years, the license duration shall be rounded up to the next whole number; andnew text end

new text begin(2) if the department receives an application for license renewal after the renewal deadline, license duration means the number of years for which the renewed license would have been issued if the renewal application had been submitted on time and all other requirements for renewal had been met.new text end

new text begin(c) The base license fee shall depend on whether the license is classified as an entry level, master, journeyman, or business license, and on the license duration. The base license fee shall be: new text end

new text beginLicense Classificationnew text end

new text beginLicense Durationnew text end

new text begin1 Yearnew text end

new text begin2 Yearsnew text end

new text begin3 Yearsnew text end

new text beginEntry levelnew text end

new text begin$10new text end

new text begin$20new text end

new text begin$30new text end

new text beginJourneymannew text end

new text begin$20new text end

new text begin$40new text end

new text begin$60new text end

new text beginMasternew text end

new text begin$40new text end

new text begin$80new text end

new text begin$120new text end

new text beginBusinessnew text end

new text begin$90new text end

new text begin$180new text end

new text begin$270new text end

new text begin(d) If there is a continuing education requirement for renewal of the license, then a continuing education fee must be included in the renewal license fee. The continuing education fee for all license classifications shall be: $10 if the renewal license duration is one year; $20 if the renewal license duration is two years; and $30 if the renewal license duration is three years.new text end

new text begin(e) If the license is issued under sections 326B.31 to 326B.59 or 326B.90 to 326B.93, then a board fee must be included in the license fee and the renewal license fee. The board fee for all license classifications shall be: $4 if the license duration is one year; $8 if the license duration is two years; and $12 if the license duration is three years.new text end

new text begin(f) If the application is for the renewal of a license issued under sections 326B.802 to 326B.885, then the contractor recovery fund fee required under section 326B.89, subdivision 3, and any additional assessment required under section 326B.89, subdivision 16, must be included in the license renewal fee.new text end

Sec. 5.

new text beginSubdivision 1.new text end

new text beginQualifications for examination.new text end

new text beginIf the applicant for a license must pass an examination administered by the commissioner in order to obtain the license, then the applicant's complete application must demonstrate that the applicant is qualified to take the examination. The applicant is qualified to take the examination if the applicant meets all requirements for the license except for passing the examination.new text end

new text beginSubd. 2.new text end

new text beginNot qualified for examination.new text end

new text beginIf the applicant is not qualified to take the examination, then the commissioner must deny the application. The applicant may subsequently submit another application, accompanied by the required fee.new text end

new text beginSubd. 3.new text end

new text beginTaking the examination.new text end

new text beginIf the applicant is qualified to take the examination, then the department must notify the applicant, and the applicant may schedule a time to take the examination within one year after the notification date. If the applicant does not take the examination at the scheduled time, the applicant may, one time only, reschedule a time to take the examination on a date within one year after the notification date. If the applicant fails to take the examination within one year after the notification date, the commissioner must deny the application and the applicant forfeits the application/examination fee. The applicant may subsequently submit another application, accompanied by the required application/examination fee.new text end

new text beginSubd. 4.new text end

new text beginExamination results.new text end

new text beginIf the applicant receives a passing score on the examination and meets all other requirements for licensure, the commissioner must approve the application and notify the applicant of the approval within 60 days of the date of the passing score. The applicant must, within 90 days after the notification of approval, pay the license fee. Upon receipt of the license fee, the commissioner must issue the license. If the applicant does not pay the license fee within 90 days after the notification of approval, the commissioner will rescind the approval and must deny the application. If the applicant does not receive a passing score on the examination, the commissioner must deny the application. If the application is denied because of the applicant's failure to receive a passing score on the examination, then the applicant cannot submit a new application for the license until at least 30 days after the notification of denial.new text end

Sec. 6.

new text begin[326B.094] RENEWAL OF LICENSES.new text end

new text beginSubdivision 1.new text end

new text beginExpiration of licenses.new text end

new text beginUnless and until the department or commissioner issues a renewal of a license, the license expires on the expiration date printed on the license. While the license is expired, the licensee cannot perform the activities authorized by the license.new text end

new text beginSubd. 2.new text end

new text beginAvailability of renewal.new text end

new text beginA licensee may apply to renew a license no later than two years after the expiration of the license. If the department receives a complete renewal application no later than two years after the expiration of the license, then the department must approve or deny the renewal application within 60 days of receiving the complete renewal application. If the department receives a renewal application more than two years after the expiration of the license, the department must return the renewal license fee to the applicant without approving or denying the application. If the licensee wishes to obtain a valid license more than two years after expiration of the license, the licensee must apply for a new license.new text end

new text beginSubd. 3.new text end

new text beginDeadline for avoiding license expiration.new text end

new text beginThe department must receive a complete application to renew a license no later than the renewal deadline. If the department does not receive a complete application by the renewal deadline, the license may expire before the department has either approved or denied the renewal application.new text end

Sec. 7.

new text begin[326B.095] INCOMPLETE LICENSE APPLICATIONS.new text end

new text beginThis section applies to both applications for initial licenses and license renewal applications. If the department determines that an application is incomplete, the department must notify the applicant of the deficiencies that must be corrected in order to complete the application. If the applicant wishes to complete the application, the department must receive the completed application within 90 days after the date the department mailed or delivered the incomplete application to the applicant. If the department does not receive the completed application by this deadline, the commissioner must deny the application and the applicant will forfeit all fees except as provided in section 326B.092, subdivision 6. If the application is for license renewal and the department receives the corrected application after the license has expired, then the corrected application must be accompanied by the late fee.new text end

Sec. 8.

new text begin[326B.096] REINSTATEMENT OF LICENSES.new text end

new text beginSubdivision 1.new text end

new text beginReinstatement after revocation.new text end

new text begin(a) If a license is revoked under this chapter and if an applicant for a license needs to pass an examination administered by the commissioner before becoming licensed, then, in order to have the license reinstated, the person who holds the revoked license must:new text end

new text begin(1) retake the examination and achieve a passing score; andnew text end

new text begin(2) meet all other requirements for an initial license, including payment of the application and examination fee and the license fee. The person holding the revoked license is not eligible for Minnesota licensure without examination based on reciprocity.new text end

new text begin(b) If a license is revoked under a chapter other than this chapter, then, in order to have the license reinstated, the person who holds the revoked license must:new text end

new text begin(1) apply for reinstatement to the commissioner no later than two years after the effective date of the revocation;new text end

new text begin(3) meet all applicable requirements for licensure, except that, unless required by the order revoking the license, the applicant does not need to retake any examination and does not need to repay a license fee that was paid before the revocation.new text end

new text beginSubd. 2.new text end

new text beginReinstatement after suspension.new text end

new text beginIf a license is suspended, then, in order to have the license reinstated, the person who holds the suspended license must:new text end

new text begin(1) apply for reinstatement to the commissioner no later than two years after the completion of the suspension period;new text end

new text begin(3) meet all applicable requirements for licensure, except that, unless required by the order suspending the license, the applicant does not need to retake any examination and does not need to repay a license fee that was paid before the suspension.new text end

new text beginSubd. 3.new text end

new text beginReinstatement after voluntary termination.new text end

new text beginA licensee who is not an individual may voluntarily terminate a license issued to the person under this chapter. If a licensee has voluntarily terminated a license under this subdivision, then, in order to have the license reinstated, the person who holds the terminated license must:new text end

new text begin(1) apply for reinstatement to the commissioner no later than the date that the license would have expired if it had not been terminated;new text end

new text begin(3) meet all applicable requirements for licensure, except that the applicant does not need to repay a license fee that was paid before the termination.new text end

Sec. 9.

new text begin[326B.097] PROHIBITION OF TRANSFER.new text end

new text beginA licensee shall not transfer or sell any license.new text end

Sec. 10.

new text begin[326B.098] CONTINUING EDUCATION.new text end

new text beginSubdivision 1.new text end

new text beginApplicability.new text end

new text beginThis section applies to seminars offered by the department for the purpose of allowing licensees to meet continuing education requirements for license renewal.new text end

new text beginSubd. 2.new text end

new text beginRescheduling.new text end

new text begin An individual who is registered with the department to attend a seminar may reschedule one time only, to attend the same seminar on a date within one year after the date of the seminar the individual was registered to attend.new text end

new text beginSubd. 3.new text end

new text beginFees nonrefundable.new text end

new text beginAll seminar fees paid to the department are nonrefundable except for any overpayment of fees.new text end

Sec. 11.

Subd. 9.

Accessibility.

(a) Public buildings. The code must provide for making public buildings constructed or remodeled after July 1, 1963, accessible to and usable by persons with disabilities, although this does not require the remodeling of public buildings solely to provide accessibility and usability to persons with disabilities when remodeling would not otherwise be undertaken.

(b) Leased space. No agency of the state may lease space for agency operations in a non-state-owned building unless the building satisfies the requirements of the State Building Code for accessibility by persons with disabilities, or is eligible to display the state symbol of accessibility. This limitation applies to leases of 30 days or more for space of at least 1,000 square feet.

(c) Meetings or conferences. Meetings or conferences for the public or for state employees which are sponsored in whole or in part by a state agency must be held in buildings that meet the State Building Code requirements relating to accessibility for persons with disabilities. This subdivision does not apply to any classes, seminars, or training programs offered by the Minnesota State Colleges and Universities or the University of Minnesota. Meetings or conferences intended for specific individuals none of whom need the accessibility features for persons with disabilities specified in the State Building Code need not comply with this subdivision unless a person with a disability gives reasonable advance notice of an intent to attend the meeting or conference. When sign language interpreters will be provided, meetings or conference sites must be chosen which allow hearing impaired participants to see their signing clearly.

(d) Exemptions. The commissioner may grant an exemption from the requirements of paragraphs (b) and (c) in advance if an agency has demonstrated that reasonable efforts were made to secure facilities which complied with those requirements and if the selected facilities are the best available for access for persons with disabilities. Exemptions shall be granted using criteria developed by the commissioner in consultation with the Council on Disability.

(e) Symbol indicating access. The wheelchair symbol adopted by Rehabilitation International's Eleventh World Congress is the state symbol indicating buildings, facilities, and grounds which are accessible to and usable by persons with disabilities. In the interests of uniformity, this symbol is the sole symbol for display in or on all public or private buildings, facilities, and grounds which qualify for its use. The secretary of state shall obtain the symbol and keep it on file. No building, facility, or grounds may display the symbol unless it is in compliance with the rules adopted by the commissioner under subdivision 1. Before any rules are proposed for adoption under this paragraph, the commissioner shall consult with the Council on Disability. Rules adopted under this paragraph must be enforced in the same way as other accessibility rules of the State Building Code.

deleted text begin(f) Municipal enforcement. Municipalities which have not adopted the State Building Code may enforce the building code requirements for persons with disabilities by either entering into a joint powers agreement for enforcement with another municipality which has adopted the State Building Code; or contracting for enforcement with an individual certified under section 326B.133, subdivision 3, to enforce the State Building Code. deleted text end

Sec. 12.

Subdivision 1.

Designation.

Each municipality shall designate a building official to administer the code. A municipality may designate no more than one building official responsible for code administration defined by each certification category deleted text beginestablished in ruledeleted text endnew text begin created by statute or rulenew text end. Two or more municipalities may combine in the designation of a building official for the purpose of administering the provisions of the code within their communities. In those municipalities for which no building officials have been designated, the state building official may use whichever state employees are necessary to perform the duties of the building official until the municipality makes a temporary or permanent designation. All costs incurred by virtue of these services rendered by state employees must be borne by the involved municipality and receipts arising from these services must be paid to the commissioner.

Sec. 13.

Minnesota Statutes 2008, section 326B.133, is amended by adding a subdivision to read:

new text beginSubd. 2a.new text end

new text beginApplication; renewal; fees; expiration.new text end

new text begin(a) An applicant for certification shall submit a completed application on a form approved by the commissioner to the department. The commissioner shall review applications for compliance with the requirements established by rule.new text end

new text begin(b) Application for initial certification or renewal certification as a building official, building official-limited, or accessibility specialist shall be according to this section and sections 326B.092 to 326B.095.new text end

new text begin(c) Fees shall be paid to the department according to section 326B.092.new text end

new text begin(d) Unless revoked or suspended under this chapter, all certifications issued or renewed under this section expire two years from the date of original issuance and every two years thereafter.new text end

Sec. 14.

Subd. 3.

Certificationnew text begin criterianew text end.

The commissioner shall by rule establish certification criteria as proof of qualification pursuant to subdivision 2. The commissioner may:

(1) develop and administer written and practical examinations to determine if a person is qualified pursuant to subdivision 2 to be a building official;

(2) accept documentation of successful completion of testing programs developed and administered by nationally recognized testing agencies, as proof of qualification pursuant to subdivision 2; or

(3) determine qualifications by satisfactory completion of clause (2) and a mandatory training program developed or approved by the commissioner.

Upon a determination of qualification under clause (1), (2), or (3), the commissioner shall issue a certificate to the building official stating that the official is certified. deleted text beginEach person applying for examination and certification pursuant to this section shall pay a nonrefundable fee of $70.deleted text end The commissioner or a designee may establish categories of certification that will recognize the varying complexities of code enforcement in the municipalities within the state. The commissioner shall provide educational programs designed to train and assist building officials in carrying out their responsibilities.

Sec. 15.

Minnesota Statutes 2008, section 326B.133, is amended by adding a subdivision to read:

new text beginSubd. 3a.new text end

new text beginCertification categories.new text end

new text begin(a) If a municipality has adopted or adopts the State Building Code, the responsibilities for code administration and enforcement are under the authority of its designated building official or the certified building official-limited.new text end

new text begin(b) Certified building official. This certification is identified as "certified building official" on the certificate card. This certification is granted to an individual who has met the certified building official requirements established by rule and passed the written examination prepared by the state. A person with this certification may serve as the designated building official for any municipality. For the purposes of calculating fees under section 326B.092, certification as a building official is a master license.new text end

new text begin(c) Certified building official-limited. This certification is identified as "certified building official-limited" on the certification card. This certification is granted to an individual who has met the certified building official-limited requirements established by rule and passed the written examination prepared by the state. An individual with this certification may perform code administration for one- and two-family dwellings, their accessory structures, and "exempt classes of buildings" as provided in Minnesota Rules, part 1800.5000, of the Board of Architecture, Engineering, Land Surveying, Landscape Architecture, Geoscience, and Interior Design, and "facilities for persons with physical disabilities" that are governed by the State Building Code. Subject to the limitations of the building official-limited certification, an individual with this certification may serve as the designated building official for any municipality. Code administration for all other buildings must be performed by a certified building official as defined in paragraph (b). A certified building official-limited may conduct inspections for other structures regulated by the State Building Code under the direction of a designated certified building official or the state building official.new text end

new text beginSubject to all other certification requirements, as of January 1, 2012, valid Class I certifications shall be included in the certified building official-limited category upon the next immediate renewal. For the purposes of calculating fees under section 326B.092, certification as a building official-limited is a journeyman license.new text end

new text begin(d) Accessibility specialist. This certification is identified as accessibility specialist on the certification card. This certification is granted to an individual who has met the "accessibility specialist" requirements established by rule and passed the written examination prepared by the state. An individual with this classification is limited to the administration of those provisions of the State Building Code that provide access for persons with disabilities. For the purposes of calculating fees under section 326B.092, certification as an accessibility specialist is a journeyman license.new text end

Sec. 16.

Subd. 8.

new text begin(a) This subdivision establishes the number of continuing education units required within each two-year certification period.new text end

new text beginA certified building official shall accumulate 16 continuing education units in any education program that is approved under Minnesota Rules, part 1301.1000.new text end

new text beginA certified building official-limited shall, in each year of the initial two-year certification period, accumulate eight continuing education units in any education program that is approved under Minnesota Rules, part 1301.1000. Continuing education units shall be reported annually during the initial two-year certification period by the method established in rule. A certified building official-limited shall accumulate 16 continuing education units for each two-year certification period thereafter in any education program that is approved under Minnesota Rules, part 1301.1000.new text end

new text beginAn accessibility specialist must accumulate four continuing education units in any of the programs described in Minnesota Rules, part 1301.1000, subpart 1 or 2. The four units must be for courses relating to building accessibility, plan review, field inspection, or building code administration.new text end

new text beginContinuing education programs may be approved as established in rule.new text end

new text begin(b) new text endSubject to sections 326B.101 to 326B.194, the commissioner may by rule establish or approve continuing education programs for certified building officials dealing with matters of building code administration, inspection, and enforcement.

Each person certified as a building official for the state must satisfactorily complete applicable educational programs established or approved by the commissioner to deleted text beginretaindeleted text endnew text beginrenewnew text end certification.

new text begin(c) The state building official may grant an extension of time to comply with continuing education requirements if the certificate holder requesting the extension of time shows cause for the extension. The request for the extension must be in writing. For purposes of this section, the certificate holder's current certification effective dates shall remain the same. The extension does not relieve the certificate holder from complying with the continuing education requirements for the next two-year period.new text end

Sec. 17.

Subd. 11.

Failure to renew.

An individual who has failed to make a timely application for renewal of a certificate is not certified and must not serve as the designated building official for any municipalitynew text begin, or a certified building official, a certified building official-limited, or an accessibility specialistnew text end until a renewed certificate has been issued by the commissioner.

Sec. 18.

new text beginSubdivision 1.new text end

new text beginApplication.new text end

new text beginThe State Building Code's requirements for persons with disabilities apply statewide. new text endA statutory or home rule charter city that does not have in effect an ordinance adopting the State Building Code is responsible for enforcement in the city of the State Building Code's requirements for deleted text begindisableddeleted text end personsnew text begin with disabilitiesnew text end. In all other areas where there is no ordinance in effect adopting the State Building Code, the county is responsible for enforcement of the State Building Code's requirements for deleted text begindisableddeleted text end personsnew text begin with disabilitiesnew text end.

new text beginSubd. 2.new text end

new text beginMunicipal enforcement.new text end

new text beginMunicipalities which have not adopted the State Building Code shall enforce the State Building Code's requirements for persons with disabilities by: (1) entering into a joint powers agreement for enforcement with another municipality which has adopted the State Building Code; (2) contracting for enforcement with an individual certified under section 326B.133, subdivision 3, to enforce the State Building Code; or (3) hiring or training their own staff.new text end

new text beginSubd. 3.new text end

new text beginResponsibilities.new text end

new text beginMunicipalities shall fulfill code responsibilities including duties and responsibilities for code administration, plan review, and inspection in accordance with the procedures established in the State Building Code.new text end

new text beginSubd. 4.new text end

new text beginEnforcement by state building official.new text end

new text beginIf the commissioner determines that a municipality is not properly administering and enforcing the State Building Code's requirements for persons with disabilities, the commissioner may have the administration and enforcement in the involved municipality undertaken by the state building official or by another building official certified by the state. The commissioner shall notify the affected municipality in writing immediately upon making the determination, and the municipality may challenge the determination as a contested case before the commissioner pursuant to the Administrative Procedure Act. The commissioner shall charge the fees set by section 326B.153 for the administration and enforcement service rendered. Any cost to the state arising from the state administration and enforcement of the State Building Code shall be borne by the subject municipality.new text end

Sec. 19.

Minnesota Statutes 2008, section 326B.197, is amended to read:

326B.197 BOND REQUIRED FOR CERTAIN CONTRACTORS.

(a) A person contracting to do gas, heating, ventilation, cooling, air conditioning, fuel burning, or refrigeration work must give new text beginand maintain new text endbond to the state in the amount of $25,000 for all work entered into within the state. The bond must be for the benefit of persons suffering financial loss by reason of the contractor's failure to comply with the requirements of the State Mechanical Code. A bond given to the state must be filed with the commissioner of labor and industry and is in lieu of all other bonds to any political subdivision required for work covered by this section. The bond must be written by a corporate surety licensed to do business in the state.

Sec. 20.

Subd. 18.

Examination.

In addition to the other requirements described in this section new text beginand sections 326B.091 to 326B.098, new text endand except as provided in subdivision 20, as a precondition to issuance of a personal license, each applicant must pass a written or oral examination developed and administered by the commissioner to ensure the competence of each applicant for license. An oral examination shall be administered only to an applicant who furnishes a written statement from a certified teacher or other professional, trained in the area of reading disabilities stating that the applicant has a specific reading disability which would prevent the applicant from performing satisfactorily on a written test. The oral examination shall be structured so that an applicant who passes the examination will not impair the applicant's own safety or that of others while acting as a licensed individual. deleted text beginNo individual failing an examination may retake it for six months thereafter, but within such six months the individual may take an examination for a lesser grade of license. Any individual failing to renew a personal license for two years or more after its expiration, and any licensee whose personal license is revoked under this chapter, shall be required to retake the examination before being issued a new license. An individual whose personal license is revoked under any other chapter is not required to retake the examination before being issued a new license, unless the personal license was revoked two years or more before the commissioner received the completed application for a new license. A licensee whose personal license is suspended for any reason is not required to retake the examination before the personal license is reinstated, unless the personal license has not been reinstated within two years after the suspension began.deleted text end

deleted text beginAn applicant for a personal license shall submit to the commissioner an application and examination fee at the time of application. Upon approval of the application, the commissioner shall schedule the applicant for the next available examination, which shall be held within 60 days. The applicant shall be allowed one opportunity to reschedule an examination without being required to submit another application and examination fee. Additionally, an applicant who fails an examination, or whose application was not approved, shall submit another application and examination fee.deleted text end

Sec. 21.

Subd. 19.

License, registration, and renewal fees; expiration.

(a) Unless revoked or suspended under this chapter, all licenses issued or renewed under this section expire on the date specified in this subdivision. Master licenses expire March 1 of each odd-numbered year after issuance or renewal. Electrical contractor licenses expire March 1 of each even-numbered year after issuance or renewal. Technology system contractor licenses expire August 1 of each even-numbered year after issuance or renewal. All other personal licenses expire two years from the date of original issuance and every two years thereafter. Registrations of unlicensed individuals expire one year from the date of original issuance and every year thereafter.

deleted text begin(b) Fees for application and examination, and for the original issuance and each subsequent renewal, are:deleted text end

deleted text begin(1) For each personal license application and examination: $35;deleted text end

deleted text begin(2) For original issuance and each subsequent renewal of:deleted text end

deleted text beginClass A Master or master special electrician, including master elevator constructor: $40 per year;deleted text end

deleted text begin(c) If any new license is issued in accordance with this subdivision for less than two years, the fee for the license shall be prorated on an annual basis.deleted text end

deleted text begin(d) A license fee may not be refunded after a license is issued or renewed. However, if the fee paid for a license was not prorated in accordance with this subdivision, the amount of the overpayment shall be refunded.deleted text end

deleted text begin(e) Any contractor who seeks reissuance of a license after it has been revoked or suspended under this chapter shall submit a reissuance fee of $100 before the license is reinstated.deleted text end

deleted text begin(f) An individual or contractor who fails to renew a license before 30 days after the expiration or registration of the license must submit a late fee equal to one year's license fee in addition to the full renewal fee. Fees for renewed licenses or registrations are not prorated. An individual or contractor that fails to renew a license or registration by the expiration date is unlicensed until the license or registration is renewed.deleted text end

new text begin(b) For purposes of calculating license fees and renewal license fees required under section 326B.092:new text end

new text begin(1) the registration of an unlicensed individual under subdivision 12 shall be considered an entry level license;new text end

new text begin(3) the following licenses shall be considered master licenses: Class A master electrician, Class B master electrician, and master elevator constructor; andnew text end

new text begin(4) the following licenses shall be considered business licenses: Class A electrical contractor, Class B electrical contractor, elevator contractor, and technology systems contractor.new text end

new text begin(c) For each filing of a certificate of responsible person by an employer, the fee is $100.new text end

Sec. 22.

Subd. 20.

Reciprocity.

The commissioner may enter into reciprocity agreements for personal licenses with another state if approved by the board. Once approved by the board, the commissioner may issue a personal license without requiring the applicant to pass an examination provided the applicant:

(c) holds a valid comparable license in the state participating in the agreement.

Agreements are subject to the following:

(1) The parties to the agreement must administer a statewide licensing program that includes examination and qualifying experience or training comparable to Minnesota's.

(2) The experience and training requirements under which an individual applicant qualified for examination in the qualifying state must be deemed equal to or greater than required for an applicant making application in Minnesota at the time the applicant acquired the license in the qualifying state.

(3) The applicant must have acquired the license in the qualifying state through an examination deemed equivalent to the same class of license examination in Minnesota. A lesser class of license may be granted where the applicant has acquired a greater class of license in the qualifying state and the applicant otherwise meets the conditions of this subdivision.

(4) At the time of application, the applicant must hold a valid license in the qualifying state and have held the license continuously for at least one year before making application in Minnesota.

(5) An applicant is not eligible for a license under this subdivision if the applicant has failed the same or greater class of license examination in Minnesota, or if the applicant's license of the same or greater class has been revoked or suspended.

(6) An applicant who has failed to renew a personal license for two years or more after its expiration is not eligible for a license under this subdivision.

Sec. 23.

Subd. 21.

Exemptions from licensing.

(a) An individual who is a maintenance electrician is not required to hold or obtain a license under sections 326B.31 to 326B.399 if:

(1) the individual is engaged in the maintenance and repair of electrical equipment, apparatus, and facilities that are owned or leased by the individual's employer and that are located within the limits of property operated, maintained, and either owned or leased by the individual's employer;

(2) the individual is supervised by:

(i) the responsible master electrician for a contractor who has contracted with the individual's employer to provide services for which a contractor's license is required; or

(ii) a licensed master electrician, a licensed maintenance electrician, an electrical engineer, or, if the maintenance and repair work is limited to technology circuits or systems work, a licensed power limited technician; and

(3) the individual's employer has deleted text beginfileddeleted text endnew text begin on filenew text end with the commissioner a new text begincurrent new text endcertificate of responsible person, signed by the responsible master electrician of the contractor, the licensed master electrician, the licensed maintenance electrician, the electrical engineer, or the licensed power limited technician, and stating that the person signing the certificate is responsible for ensuring that the maintenance and repair work performed by the employer's employees complies with the Minnesota Electrical Act and the rules adopted under that act. new text beginThe employer must pay a filing fee to file a certificate of responsible person with the commissioner. The certificate shall expire two years from the date of filing. In order to maintain a current certificate of responsible person, the employer must resubmit a certificate of responsible person, with a filing fee, no later than two years from the date of the previous submittal.new text end

(b) Employees of a licensed electrical or technology systems contractor or other employer where provided with supervision by a master electrician in accordance with subdivision 1, or power limited technician in accordance with subdivision 7, paragraph (a), clause (1), are not required to hold a license under sections 326B.31 to 326B.399 for the planning, laying out, installing, altering, and repairing of technology circuits or systems except planning, laying out, or installing:

(1) in other than residential dwellings, class 2 or class 3 remote control circuits that control circuits or systems other than class 2 or class 3, except circuits that interconnect these systems through communication, alarm, and security systems are exempted from this paragraph;

(3) technology circuits or systems in hazardous classified locations as covered by chapter 5 of the National Electrical Code.

(c) Companies and their employees that plan, lay out, install, alter, or repair class 2 and class 3 remote control wiring associated with plug or cord and plug connected appliances other than security or fire alarm systems installed in a residential dwelling are not required to hold a license under sections 326B.31 to 326B.399.

(d) Heating, ventilating, air conditioning, and refrigeration contractors and their employees are not required to hold or obtain a license under sections 326B.31 to 326B.399 when performing heating, ventilating, air conditioning, or refrigeration work as described in section 326B.38.

(e) Employees of any electrical, communications, or railway utility, cable communications company as defined in section 238.02, or a telephone company as defined under section 237.01 or its employees, or of any independent contractor performing work on behalf of any such utility, cable communications company, or telephone company, shall not be required to hold a license under sections 326B.31 to 326B.399:

(1) while performing work on installations, materials, or equipment which are owned or leased, and operated and maintained by such utility, cable communications company, or telephone company in the exercise of its utility, antenna, or telephone function, and which

(i) are used exclusively for the generation, transformation, distribution, transmission, or metering of electric current, or the operation of railway signals, or the transmission of intelligence and do not have as a principal function the consumption or use of electric current or provided service by or for the benefit of any person other than such utility, cable communications company, or telephone company, and

(ii) are generally accessible only to employees of such utility, cable communications company, or telephone company or persons acting under its control or direction, and

(iii) are not on the load side of the service point or point of entrance for communication systems;

(2) while performing work on installations, materials, or equipment which are a part of the street lighting operations of such utility; or

(3) while installing or performing work on outdoor area lights which are directly connected to a utility's distribution system and located upon the utility's distribution poles, and which are generally accessible only to employees of such utility or persons acting under its control or direction.

(f) An owner shall not be required to hold or obtain a license under sections 326B.31 to 326B.399.

Sec. 24.

Minnesota Statutes 2008, section 326B.42, is amended by adding a subdivision to read:

new text beginSubd. 1a.new text end

new text beginContractor.new text end

new text begin"Contractor" means a person who performs or offers to perform any plumbing work, with or without compensation, who is licensed as a contractor by the commissioner. Contractor includes plumbing contractors and restricted plumbing contractors.new text end

Sec. 25.

Minnesota Statutes 2008, section 326B.42, is amended by adding a subdivision to read:

new text beginSubd. 8.new text end

new text beginPlumbing contractor.new text end

Sec. 26.

Minnesota Statutes 2008, section 326B.42, is amended by adding a subdivision to read:

new text beginSubd. 9.new text end

new text beginResponsible licensed plumber.new text end

new text beginA contractor's "responsible licensed plumber" means the licensed master plumber or licensed restricted master plumber designated in writing by the contractor in the contractor's license application, or in another manner acceptable to the commissioner, as the individual responsible for the contractor's compliance with sections 326B.41 to 326B.49, all rules adopted under these sections and sections 326B.50 to 326B.59, and all orders issued under section 326B.082.new text end

Sec. 27.

Minnesota Statutes 2008, section 326B.42, is amended by adding a subdivision to read:

new text beginRestricted plumbing contractor.new text end

Sec. 28.

Minnesota Statutes 2008, section 326B.44, is amended to read:

326B.44 LOCAL REGULATIONS.

Any of the following entities may, by ordinance, adopt local regulations providing for plumbing permits, approval of plans and specifications, and inspections of plumbing, which regulations are not in conflict with the plumbing code: any city having a system of waterworks or sewerage, regardless of population; any town having a population of 5,000 or more according to the last federal census, exclusive of any statutory cities located therein; and the Metropolitan Airports Commission. No such entity shall prohibit deleted text beginplumbersdeleted text endnew text begin plumbing contractorsnew text end licensed by the commissioner from engaging in or working at the business of plumbing, except cities and statutory cities which, prior to April 21, 1933, by ordinance required the licensing of plumbers. No such entity shall require any person who engages in the business of plumbing to post a bond as a prerequisite for engaging in the business of plumbing, except the bond to the state required under section 326B.46 and except any performance bond required under a contract with the person for the performance of plumbing work for the entity. No such entity shall require any person who engages in the business of plumbing to maintain public liability insurance as a prerequisite for engaging in the business of plumbing, except the insurance required under section 326B.46 and except any public liability insurance required under a contract with the person for the performance of plumbing work for the entity. No city or town may require a license for persons performing building sewer or water service installation who have completed pipe laying training as prescribed by the commissioner of labor and industry. Any city by ordinance may prescribe regulations, reasonable standards, and inspections and grant permits to any person engaged in the business of installing water softeners, who is not licensed as a deleted text beginmaster plumber or journeyman plumberdeleted text endnew text begin contractornew text end by the commissioner, to connect water softening and water filtering equipment to private residence water distribution systems, where provision has been previously made therefor and openings left for that purpose or by use of cold water connections to a domestic water heater; where it is not necessary to rearrange, make any extension or alteration of, or addition to any pipe, fixture or plumbing connected with the water system except to connect the water softener, and provided the connections so made comply with minimum standards prescribed by the Plumbing Board.

Sec. 29.

326B.46 LICENSING, BOND AND INSURANCE.

Subdivision 1.

License required.

(a) No deleted text beginpersondeleted text endnew text begin individualnew text end shall engage in or work at the business of a master plumber, restricted master plumber, journeyman plumber, and restricted journeyman plumber unless licensed to do so by the deleted text beginstatedeleted text end commissioner. A license is not required for individuals performing building sewer or water service installation who have completed pipe laying training as prescribed by the commissioner deleted text beginof labor and industrydeleted text end. A master plumber may also work as a journeyman plumber, a restricted journeyman plumber, and a restricted master plumber. A journeyman plumber may also work as a restricted journeyman plumber. Anyone not so licensed may do plumbing work which complies with the provisions of the minimum standards prescribed by the Plumbing Board on premises or that part of premises owned and actually occupied by the worker as a residence, unless otherwise forbidden to do so by a local ordinance.

(b) No person shall engage in the business of planning, superintending, or installing plumbing or shall install plumbing in connection with the dealing in and selling of plumbing material and supplies unless at all times a licensed master plumber, or in cities and towns with a population of fewer than 5,000 according to the new text beginlast new text endfederal census, a restricted master plumber, who shall be responsible for proper installation, is in charge of the plumbing work of the persondeleted text begin, firm, or corporationdeleted text end.

new text begin(c) Except as provided in subdivision 2, no person shall perform or offer to perform plumbing work with or without compensation unless the person obtains a contractor's license. A contractor's license does not of itself qualify its holder to perform the plumbing work authorized by holding a master, journeyman, restricted master, or restricted journeyman license.new text end

new text beginSubd. 1a.new text end

new text beginExemptions from licensing.new text end

new text begin(a) An individual without a contractor license may do plumbing work on the individual's residence in accordance with subdivision 1, paragraph (a).new text end

new text begin(b) An individual who is an employee working on the maintenance and repair of plumbing equipment, apparatus, or facilities owned or leased by the individual's employer and which is within the limits of property owned or leased, and operated or maintained by the individual's employer, shall not be required to maintain a contractor license as long as the employer has on file with the commissioner a current certificate of responsible person. The certificate must be signed by the responsible master plumber or, in an area of the state that is not a city or town with a population of more than 5,000 according to the last federal census, restricted master plumber, and must state that the person signing the certificate is responsible for ensuring that the maintenance and repair work performed by the employer's employees comply with sections 326B.41 to 326B.49, all rules adopted under those sections and sections 326B.50 to 326B.59, and all orders issued under section 326B.082. The employer must pay a filing fee to file a certificate of responsible person with the commissioner. The certificate shall expire two years from the date of filing. In order to maintain a current certificate of responsible person, the employer must resubmit a certificate of responsible person, with a filing fee, no later than two years from the date of the previous submittal. The filing of the certificate of responsible person does not exempt any employee of the employer from the requirements of this chapter regarding individual licensing as a plumber or registration as a plumber's apprentice.new text end

new text begin(c) If a contractor employs a licensed plumber, the licensed plumber does not need a separate contractor license to perform plumbing work on behalf of the employer within the scope of the licensed plumber's license.new text end

new text beginSubd. 1b.new text end

new text beginEmployment of master plumber or restricted master plumber.new text end

new text begin(a) Each contractor must designate a responsible licensed plumber, who shall be responsible for the performance of all plumbing work in accordance with sections 326B.41 to 326B.49, all rules adopted under these sections and sections 326B.50 to 326B.59, and all orders issued under section 326B.082. A plumbing contractor's responsible licensed plumber must be a master plumber. A restricted plumbing contractor's responsible licensed plumber must be a master plumber or a restricted master plumber. A plumbing contractor license authorizes the contractor to offer to perform and, through licensed and registered individuals, to perform plumbing work in all areas of the state. A restricted plumbing contractor license authorizes the contractor to offer to perform and, through licensed and registered individuals, to perform plumbing work in all areas of the state except in cities and towns with a population of more than 5,000 according to the last federal census.new text end

new text begin(b) If the contractor is an individual or sole proprietorship, the responsible licensed plumber must be the individual, proprietor, or managing employee. If the contractor is a partnership, the responsible licensed plumber must be a general partner or managing employee. If the contractor is a limited liability company, the responsible licensed plumber must be a chief manager or managing employee. If the contractor is a corporation, the responsible licensed plumber must be an officer or managing employee. If the responsible licensed plumber is a managing employee, the responsible licensed plumber must be actively engaged in performing plumbing work on behalf of the contractor, and cannot be employed in any capacity as a plumber for any other contractor. An individual may be the responsible licensed plumber for only one contractor.new text end

new text begin(c) All applications and renewals for contractor licenses shall include a verified statement that the applicant or licensee has complied with this subdivision.new text end

Subd. 2.

Bond; insurance.

deleted text beginAny person contracting to do plumbing work must givedeleted text endnew text beginAs a condition of licensing, each contractor shall give and maintain new text endbond to the state in the amount of at least $25,000 for (1) all plumbing work entered into within the state or (2) all plumbing work and subsurface sewage treatment work entered into within the state. If the bond is for both plumbing work and subsurface sewage treatment work, the bond must comply with the requirements of this section and section 115.56, subdivision 2, paragraph (e). The bond shall be for the benefit of persons injured or suffering financial loss by reason of failure to comply with the requirements of the State Plumbing Code and, if the bond is for both plumbing work and subsurface sewage treatment work, financial loss by reason of failure to comply with the requirements of sections 115.55 and 115.56. The bond shall be filed with the commissioner and shall be written by a corporate surety licensed to do business in the state.

In addition, deleted text begineach applicant for a master plumber license or restricted master plumber license, or renewal thereof, shall provide evidence ofdeleted text endnew text beginas a condition of licensing, each contractor shall have and maintain in effect new text endpublic liability insurance, including products liability insurance with limits of at least $50,000 per person and $100,000 per occurrence and property damage insurance with limits of at least $10,000. The insurance shall be written by an insurer licensed to do business in the state of Minnesota and each licensed master plumber shall maintain on file with the commissioner a certificate evidencing the insurance providing that the insurance shall not be canceled without the insurer first giving 15 days written notice to the commissioner. deleted text beginThe term of the insurance shall be concurrent with the term of the license.deleted text end

deleted text beginSubd. 3. deleted text end

deleted text beginBond and insurance exemption.deleted text end

deleted text beginIf a master plumber or restricted master plumber who is in compliance with the bond and insurance requirements of subdivision 2, employs a licensed plumber, the employee plumber shall not be required to meet the bond and insurance requirements of subdivision 2. An individual who is an employee working on the maintenance and repair of plumbing equipment, apparatus, or facilities owned or leased by the individual's employer and which is within the limits of property owned or leased, and operated or maintained by the individual's employer, shall not be required to meet the bond and insurance requirements of subdivision 2. deleted text end

deleted text beginSubd. 4.deleted text end

deleted text beginFee.deleted text end

deleted text begin(a) Each person giving bond to the state under subdivision 2 shall pay the department a bond registration fee of $40 for one year or $80 for two years.deleted text end

deleted text begin(b) The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the bond registration from one year to two years so that the expiration of bond registration corresponds with the expiration of the license issued under section 326B.475 or 326B.49, subdivision 1.deleted text end

Subd. 5.

Exterior connections.

Persons licensed as manufactured home installers under chapter 327B are not required to be licensed under sections 326B.42 to 326B.49 when connecting the exterior building drain sewer outlets to the aboveground building sewer system and when connecting the exterior water line to the aboveground water system to the manufactured home as described in National Manufactured Housing Construction and Safety Standards Act of 1974, United States Code, title 42, section 5401 et seq. No additional licensure, bond, or insurance related to the scope of work permitted under this subdivision may be required of a licensed manufactured home installer by any unit of government.

new text beginSubd. 6.new text end

new text beginWell contractor exempt from licensing and bond; conditions.new text end

new text beginNo license, registration, or bond under sections 326B.42 to 326B.49 is required of a well contractor or a limited well/boring contractor who is licensed and bonded under section 103I.525 or 103I.531 and is engaged in the work or business of installing (1) water service pipe from a well to a pressure tank or a frost-free water hydrant with an antisiphon device which is located entirely outside of a structure requiring potable water, or (2) a temporary shut-off valve on a well water service pipe. For the purposes of this subdivision, "temporary" means a time period not to exceed six months. This subdivision expires one year after the date of enactment.new text end

Sec. 30.

Minnesota Statutes 2008, section 326B.47, is amended to read:

326B.47 PLUMBER'S APPRENTICES.

Subdivision 1.

Registrationnew text begin; supervision; recordsnew text end.

new text begin(a)new text end All plumber's apprentices must be registered. To be a registered plumber's apprentice, an individual must either:

(1) be an individual employed in the trade of plumbing under an apprenticeship agreement approved by the department under Minnesota Rules, part 5200.0300; or

(2) be an unlicensed individual registered with the commissioner under subdivision 3.

new text begin(b)new text end A plumber's apprentice is authorized to assist in the installation of plumbing only while under the direct supervision of a master, restricted master, journeyman, or restricted journeyman plumber. The master, restricted master, journeyman, or restricted journeyman plumber is responsible for ensuring that all plumbing work performed by the plumber's apprentice complies with the plumbing code. new text beginThe supervising master, restricted master, journeyman, or restricted journeyman must be licensed and must be employed by the same employer as the plumber's apprentice. Licensed individuals shall not permit plumber's apprentices to perform plumbing work except under the direct supervision of an individual actually licensed to perform such work. Plumber's apprentices shall not supervise the performance of plumbing work or make assignments of plumbing work to unlicensed individuals.new text end

new text begin(c) Contractors employing plumber's apprentices to perform plumbing work shall maintain records establishing compliance with this subdivision that shall identify all plumber's apprentices performing plumbing work, and shall permit the department to examine and copy all such records.new text end

Subd. 2.

Journeyman exam.

A plumber's apprentice who has completed four years of practical plumbing experience is eligible to take the journeyman plumbing examination. Up to 24 months of practical plumbing experience prior to becoming a plumber's apprentice may be applied to the four-year experience requirement. However, none of this practical plumbing experience may be applied if the individual did not have any practical plumbing experience in the 12-month period immediately prior to becoming a plumber's apprentice. The Plumbing Board may adopt rules to evaluate whether the individual's past practical plumbing experience is applicable in preparing for the journeyman's examination. If two years after completing the training the individual has not taken the examination, the four years of experience shall be forfeited.

The commissioner may allow an extension of the two-year period for taking the exam for cases of hardship or other appropriate circumstances.

Subd. 3.

Registration, rules, applications, renewals, and fees.

An unlicensed individual may register by completing and submitting to the commissioner deleted text begina registrationdeleted text endnew text beginan applicationnew text end form provided by the commissionernew text begin, with all fees required by section 326B.092new text end. A completed deleted text beginregistrationdeleted text endnew text begin applicationnew text end form must state the date the individual began training, the individual's age, schooling, previous experience, and employer, and other information required by the commissioner. The board may prescribe rules, not inconsistent with this section, for the registration of unlicensed individuals. deleted text beginEach applicant for initial registration as a plumber's apprentice shall pay the department an application fee of $25.deleted text end Applications for initial registration may be submitted at any time. Registration must be renewed annually and shall be for the period from July 1 of each year to June 30 of the following year. deleted text beginApplications for renewal registration must be received by the commissioner by June 30 of each registration period on forms provided by the commissioner, and must be accompanied by a fee of $25. An application for renewal registration received on or after July 1 in any year but no more than three months after expiration of the previously issued registration must pay the past due renewal fee plus a late fee of $25. No applications for renewal registration will be accepted more than three months after expiration of the previously issued registration.deleted text end

Sec. 31.

Subd. 2.

Use of license.

A restricted master plumber and restricted journeyman plumber may engage in the plumbing trade in all areas of the state except in cities and towns with a population of more than 5,000 according to the new text beginlast new text endfederal census.

Sec. 32.

Subd. 4.

Renewal; use period for license.

(a) A restricted master plumber and restricted journeyman plumber license must be renewed for as long as that licensee engages in the plumbing trade. new text beginNotwithstanding section 326B.094, new text endfailure to renew a restricted master plumber and restricted journeyman plumber license within 12 months after the expiration date will result in permanent forfeiture of the restricted master plumber and restricted journeyman plumber license.

(b) The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of restricted master plumber and restricted journeyman plumber licenses from one year to two years. By June 30, 2011, all restricted master plumber and restricted journeyman plumber licenses shall be two-year licenses.

Sec. 33.

Subdivision 1.

Application, examination, and license fees.

(a) Applications for new text beginmaster and journeyman new text endplumber's deleted text beginlicensedeleted text endnew text begin licensesnew text end shall be made to the commissioner, with deleted text beginfeedeleted text endnew text begin all fees required by section 326B.092new text end. Unless the applicant is entitled to a renewal, the applicant shall be licensed by the commissioner only after passing a satisfactory examination developed and administered by the commissioner, based upon rules adopted by the Plumbing Board, showing fitness. deleted text beginExamination fees for both journeyman and master plumbers shall be $50 for each examination. Upon being notified of having successfully passed the examination for original license the applicant shall submit an application, with the license fee herein provided. The license fee for each initial master plumber's license shall be $240. The license fee for each initial journeyman plumber's license shall be $110.deleted text end

(b) All initial deleted text beginmaster anddeleted text end journeyman plumber's licenses shall be effective for more than one calendar year and shall expire on December 31 of the year after the year in which the application is made. deleted text beginThe license fee for each renewal master plumber's license shall be $120 for one year or $240 for two years. The license fee for each renewal journeyman plumber's license shall be $55 for one year or $110 for two years.deleted text endnew text beginAll master plumber's licenses shall expire on December 31 of each even-numbered year after issuance or renewal. new text endThe commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of master and journeyman plumber's licenses from one year to two years. By June 30, 2011, all renewed master and journeyman plumber's licenses shall be two-year licenses.

(c) deleted text beginAny licensee who does not renew a license within two years after the license expires is no longer eligible for renewal. Such an individual must retake and pass the examination before a new license will be issued. A journeyman or master plumber who submits a license renewal application after the time specified in rule but within two years after the license expired must pay all past due renewal fees plus a late fee of $25.deleted text endnew text beginApplications for contractor licenses shall be made to the commissioner, with all fees required by section 326B.092. All contractor licenses shall expire on December 31 of each odd-numbered year after issuance or renewal.new text end

new text begin(d) For purposes of calculating license fees and renewal license fees required under section 326B.092:new text end

new text begin(1) the following licenses shall be considered business licenses: plumbing contractor and restricted plumbing contractor;new text end

new text begin(2) the following licenses shall be considered master licenses: master plumber and restricted master plumber;new text end

new text begin(3) the following licenses shall be considered journeyman licenses: journeyman plumber and restricted journeyman plumber; andnew text end

new text begin(4) the registration of a plumber's apprentice under section 326B.47, subdivision 3, shall be considered an entry level license.new text end

new text begin(e) For each filing of a certificate of responsible person by an employer, the fee is $100.new text end

Sec. 34.

Minnesota Statutes 2008, section 326B.50, is amended by adding a subdivision to read:

new text beginSubd. 1a.new text end

new text beginResponsible licensed master.new text end

new text begin"Responsible licensed master" means the licensed water conditioning master or licensed master plumber designated in writing by the water conditioning contractor in the water conditioning contractor's license application, or in another manner acceptable to the commissioner, as the individual responsible for the water conditioning contractor's compliance with sections 326B.50 to 326B.59, all rules adopted under these sections, the Minnesota Plumbing Code, and all orders issued under section 326B.082. new text end

Sec. 35.

Minnesota Statutes 2008, section 326B.50, is amended by adding a subdivision to read:

new text beginSubd. 2a.new text end

new text beginWater conditioning contractor.new text end

new text begin"Water conditioning contractor" means a person who performs or offers to perform any water conditioning installation or water conditioning servicing, with or without compensation, who is licensed as a water conditioning contractor by the commissioner.new text end

Sec. 36.

Minnesota Statutes 2008, section 326B.50, is amended by adding a subdivision to read:

new text beginSubd. 3a.new text end

new text beginWater conditioning journeyman.new text end

new text begin"Water conditioning journeyman" means an individual, other than a water conditioning master, who has demonstrated practical knowledge of water conditioning installation and servicing, and who is licensed by the commissioner as a water conditioning journeyman.new text end

Sec. 37.

Minnesota Statutes 2008, section 326B.50, is amended by adding a subdivision to read:

new text beginSubd. 3b.new text end

new text beginWater conditioning master.new text end

new text begin"Water conditioning master" means an individual who has demonstrated skill in planning, superintending, installing, and servicing water conditioning installations, and who is licensed by the commissioner as a water conditioning master.new text end

Sec. 38.

Minnesota Statutes 2008, section 326B.54, is amended to read:

326B.54 VIOLATIONS TO BE REPORTED TO COMMISSIONER.

Such local authority as may be designated by any such ordinance for the issuance of such water conditioning installation and servicing permits and approval of such plans shall report to the commissioner persistent or willful violations of the same and any incompetence of a licensed water conditioning contractornew text begin, licensed water conditioning master,new text end or licensed water conditioning deleted text begininstallerdeleted text endnew text begin journeymannew text end observed by the local authority.

Sec. 39.

326B.55 LICENSING IN CERTAIN CITIES; QUALIFICATIONS; RULES.

Subdivision 1.

Licensing.

new text begin(a) Except as provided in paragraph (d), no individual shall perform water conditioning installation or water conditioning servicing unless licensed by the commissioner as a master plumber, journeyman plumber, water conditioning master, or water conditioning journeyman, or, in all areas of the state except in cities and towns with a population of more than 5,000 according to the last federal census, as a restricted master plumber or restricted journeyman plumber.new text end

new text begin(b) Except as provided in paragraph (e), no person shall perform or offer to perform water conditioning installation or water conditioning servicing with or without compensation unless the person obtains a water conditioning contractor's license. A water conditioning contractor's license does not of itself qualify its holder to perform the water conditioning installation or water conditioning servicing authorized by holding a water conditioning master or water conditioning journeyman license.new text end

new text begin(c) Except as provided in paragraph (d), new text end no person shall engage in or work at the business of water conditioning installation or servicing anywhere in the state unless deleted text begin(1)deleted text endat all times an individual licensed as a new text beginmaster plumber or new text endwater conditioning deleted text begincontractordeleted text endnew text beginmasternew text end by the commissioner deleted text beginshall bedeleted text endnew text begin, who isnew text end responsible for the proper new text begininstallation and servicing, is in charge of the new text endwater conditioning installation and servicing work deleted text beginof such person, and (2) all installations, other thandeleted text endnew text begin.new text end

new text beginIf a water conditioning contractor employs a licensed master, restricted master, journeyman or restricted journeyman plumber, or a licensed water conditioning master or journeyman, then the licensed individual does not need a separate water conditioning contractor license to perform water conditioning installation or servicing on behalf of the employer within the scope of the individual's plumber license.new text end

new text begin(d) No water conditioning contractor, water conditioning master, or water conditioning journeyman license is required:new text end

new text begin(1) fornew text end exchanges of portable new text beginwater conditioning new text endequipmentdeleted text begin, are performed by a licensed water conditioning contractor or licensed water conditioning installer. Any individual not so licensed maydeleted text endnew text begin; ornew text end

new text begin(2) for an individual tonew text end perform water conditioning work that complies with the minimum standards prescribed by the Plumbing Board on premises or that part of premises owned and occupied by the deleted text beginworkerdeleted text endnew text begin individualnew text end as a residence, unless otherwise prohibited by a local ordinance.new text begin The scope of work that a master plumber, restricted master plumber, journeyman plumber, or restricted journeyman plumber is authorized to perform as an employee of a licensed water conditioning contractor shall be limited to the scope of work that the licensed water conditioning contractor is licensed to perform.new text end

Subd. 2.

Qualifications for licensing.

new text begin(a) new text endA water conditioning deleted text begincontractordeleted text endnew text begin masternew text endlicense shall be issued only to an individual who has demonstrated skill in planning, superintending, and servicing water conditioning installations, and has successfully passed the examination for water conditioning deleted text begincontractorsdeleted text endnew text begin mastersnew text end. A water conditioning deleted text begininstallerdeleted text endnew text beginjourneymannew text end license shall only be issued to an individual other than a water conditioning deleted text begincontractordeleted text endnew text begin masternew text end who has demonstrated practical knowledge of water conditioning installation, and has successfully passed the examination for water conditioning deleted text begininstallersdeleted text endnew text beginjourneymennew text end. A water conditioning deleted text begininstallerdeleted text endnew text begin journeymannew text end must successfully pass the examination for water conditioning deleted text begincontractorsdeleted text endnew text begin mastersnew text end before being licensed as a water conditioning deleted text begincontractordeleted text endnew text begin masternew text end.

new text begin(b) Each water conditioning contractor must designate a responsible licensed master plumber or a responsible licensed water conditioning master, who shall be responsible for the performance of all water conditioning installation and servicing in accordance with the requirements of sections 326B.50 to 326B.59, all rules adopted under sections 326B.50 to 326B.59, the Minnesota Plumbing Code, and all orders issued under section 326B.082. If the water conditioning contractor is an individual or sole proprietorship, the responsible licensed master must be the individual, proprietor, or managing employee. If the water conditioning contractor is a partnership, the responsible licensed master must be a general partner or managing employee. If the water conditioning contractor is a limited liability company, the responsible licensed master must be a chief manager or managing employee. If the water conditioning contractor is a corporation, the responsible licensed master must be an officer or managing employee. If the responsible licensed master is a managing employee, the responsible licensed master must be actively engaged in performing water conditioning work on behalf of the water conditioning contractor and cannot be employed in any capacity as a water conditioning master or water conditioning journeyman for any other water conditioning contractor. An individual must not be the responsible licensed master for more than one water conditioning contractor.new text end

new text begin(c) All applications and renewals for water conditioning contractor licenses shall include a verified statement that the applicant or licensee has complied with paragraph (b).new text end

new text begin(d) Each application and renewal for a water conditioning master license, water conditioning journeyman license, or a water conditioning contractor license shall be accompanied by all fees required by section 326B.092.new text end

(2) collect deleted text beginan examination fee from each examinee for a license as a water conditioning contractor and an examination fee from each examinee for a license as a water conditioning installer in an amount set forth in section 326B.58deleted text endnew text begin the fees required by section 326B.092new text end.

new text beginSubd. 4.new text end

new text beginPlumber's apprentices.new text end

new text begin(a) A plumber's apprentice who is registered under section 326B.47 is authorized to assist in water conditioning installation and water conditioning servicing only while under the direct supervision of a master plumber, journeyman plumber, water conditioning master, or water conditioning journeyman. The master or journeyman is responsible for ensuring that all water conditioning work performed by the plumber's apprentice complies with the plumbing code and rules adopted under sections 326B.50 to 326B.59. The supervising master or journeyman must be licensed and must be employed by the same employer as the plumber's apprentice. Licensed individuals shall not permit plumber's apprentices to perform water conditioning work except under the direct supervision of an individual actually licensed to perform such work. Plumber's apprentices shall not supervise the performance of plumbing work or make assignments of plumbing work to unlicensed individuals.new text end

new text begin(b) Water conditioning contractors employing plumber's apprentices to perform water conditioning work shall maintain records establishing compliance with this subdivision that shall identify all plumber's apprentices performing water conditioning work, and shall permit the department to examine and copy all such records.new text end

Subdivision 1.

Bonds.

(a) deleted text beginAn applicant for a water conditioning contractor or installer license or renewal thereof who is required by any political subdivision to give a bond to obtain or maintain the license, may comply with any political subdivision bonding requirement by givingdeleted text endnew text begin As a condition of licensing, each water conditioning contractor shall give and maintainnew text end a bond to the state as described in paragraph (b). No applicant for a water conditioning contractor or installer license who maintains the bond under paragraph (b) shall be otherwise required to meet the bond requirements of any political subdivision.

(b) Each bond given to the state under this subdivision shall be in the total sum of $3,000 conditioned upon the faithful and lawful performance of all water conditioning deleted text begincontracting or installing workdeleted text endnew text begin installation or servicingnew text end done within the state. The bond shall be for the benefit of persons suffering injuries or damages due to the work. The bond shall be filed with the commissioner and shall be written by a corporate surety licensed to do business in this state. The bond must remain in effect at all times while the application is pending and while the license is in effect.

Subd. 2.

Insurance.

(a) deleted text beginEach applicant for a water conditioning contractor or installer license or renewal thereof who is required by any political subdivision to maintain insurance to obtain or maintain the license may comply with any political subdivision's insurance requirement by maintainingdeleted text endnew text begin As a condition of licensing, each water conditioning contractor shall have and maintain in effectnew text end the insurance described in paragraph (b). No applicant for a water conditioning contractor deleted text beginor installerdeleted text end license who maintains the insurance described in paragraph (b) shall be otherwise required to meet the insurance requirements of any political subdivision.

(b) The insurance shall provide coverage, including products liability coverage, for all damages in connection with licensed work for which the licensee is liable, with personal damage limits of at least $50,000 per person and $100,000 per occurrence and property damage insurance with limits of at least $10,000. The insurance shall be written by an insurer licensed to do business in this state and a certificate evidencing the insurance shall be filed with the commissioner. The insurance must remain in effect at all times while the application is pending and while the license is in effect. The insurance shall not be canceled without the insurer first giving 15 days' written notice to the commissioner.

Subd. 3.

Bond and insurance exemption.

A water conditioning contractor or installer who is an employee of a water conditioning contractor or installer, including an employee engaged in the maintenance and repair of water conditioning equipment, apparatus, or facilities owned, leased and operated, or maintained by the employer, is not required to meet the bond and insurance requirements of subdivisions 1 and 2 or of any political subdivision.

Subd. 4.

Fee.

(a) The commissioner shall collect a $40 bond registration fee for one year or $80 for two years from each applicant for issuance or renewal of a water conditioning contractor or installer license who elects to proceed under subdivisions 1 and 2.

(b) The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the bond registration from one year to two years so that the expiration of bond registration corresponds with the expiration of the license issued under section 326B.55.

Sec. 41.

326B.58 FEESnew text begin; RENEWALnew text end.

(a) deleted text beginExamination fees for both water conditioning contractors and water conditioning installers shall be $50 for each examination.deleted text end Each initial water conditioning deleted text begincontractor and installerdeleted text endnew text begin master and water conditioning journeymannew text end license shall be effective for more than one calendar year and shall expire on December 31 of the year after the year in which the application is made. deleted text beginThe license fee for each initial water conditioning contractor's license shall be $140, except that the license fee shall be $105 if the application is submitted during the last three months of the calendar year. The license fee for each renewal water conditioning contractor's license shall be $70 for one year or $140 for two years. The license fee for each initial water conditioning installer license shall be $70, except that the license fee shall be $52.50 if the application is submitted during the last three months of the calendar year. The license fee for each renewal water conditioning installer license shall be $35 for one year or $70 for two years.deleted text end

(b) The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of water conditioning deleted text begincontractor and installerdeleted text endnew text begin master and journeymannew text end licenses from one year to two years. By June 30, 2011, all renewed water conditioning contractor and installer licenses shall be two-year licenses. The deleted text begincommissionerdeleted text endnew text begin Plumbing Boardnew text end may by rule prescribe for the expiration and renewal of licenses.

(c) deleted text beginAny licensee who does not renew a license within two years after the license expires is no longer eligible for renewal. Such an individual must retake and pass the examination before a new license will be issued. A water conditioning contractor or water conditioning installer who submits a license renewal application after the time specified in rule but within two years after the license expired must pay all past due renewal fees plus a late fee of $25deleted text endnew text begin All water conditioning contractor licenses shall expire on December 31 of the year after issuance or renewalnew text end.

new text begin(d) For purposes of calculating license fees and renewal fees required under section 326B.092:new text end

new text begin(1) a water conditioning journeyman license shall be considered a journeyman license;new text end

new text begin(2) a water conditioning master license shall be considered a master license; andnew text end

new text begin(3) a water conditioning contractor license shall be considered a business license.new text end

Subd. 6.

Exemptions.

(2) a material person, manufacturer, or retailer furnishing finished products, materials, or articles of merchandise who does not install or attach the items;

(3) an owner of residential real estate who builds or improves any structure on residential real estate, if the building or improving is performed by the owner's bona fide employees or by individual owners personally. This exemption does not apply to an owner who constructs or improves property for purposes of speculation if the building or improving is performed by the owner's bona fide employees or by individual owners personally. A residential building contractor or residential remodeler will be presumed to be building or improving for purposes of speculation if the contractor or remodeler constructs or improves more than one property within any 24-month period;

(4) an architect or professional engineer engaging in professional practice as defined by section 326.02, subdivisions 2 and 3;

(5) a person whose total gross annual receipts for performing specialty skills for which licensure would be required under this section do not exceed $15,000;

(6) a mechanical contractor;

(7) a plumber, electrician, or other person whose profession is otherwise subject to statewide licensing, when engaged in the activity which is the subject of that licensure;

(8) specialty contractors who provide only one special skill as defined in section 326B.802;

(9) a school district, or a technical college governed under chapter 136F; and

(10) Habitat for Humanity and Builders Outreach Foundation, and their individual volunteers when engaged in activities on their behalf.

To qualify for the exemption in clause (5), a person must obtain a certificate of exemption from licensure from the commissioner. A certificate of exemption will be issued upon the applicant's filing with the commissioner, an affidavit stating that the applicant does not expect to exceed $15,000 in gross annual receipts derived from performing services which require licensure under this sectionnew text begin during the calendar year in which the affidavit is received. For the purposes of calculating fees under section 326B.092, a certificate of exemption is an entry level licensenew text end. To renew the exemption in clause (5), the applicant must file an affidavit stating that the applicant did not exceed $15,000 in gross annual receipts during the past calendar year. If a person, operating under the exemption in clause (5), exceeds $15,000 in gross receipts during any calendar year, the person must immediately surrender the deleted text beginexemptiondeleted text end certificate new text beginof exemption new text endand apply for the appropriate license. The person must remain licensed until such time as the person's gross annual receipts during a calendar year fall below $15,000. The person may then apply for an exemption for the next calendar year.

Sec. 43.

Subdivision 1.

(a) deleted text beginThe licensing fee for persons licensed pursuant to sections 326B.802 to 326B.885, except for manufactured home installers, is $200 for a two-year period. Thedeleted text endnew text begin For the purposes of calculating fees under section 326B.092, an initial or renewed residential contractor, residential remodeler, or residential roofer license is a business license. Notwithstanding section 326B.092, thenew text end licensing fee for manufactured home installers under section 327B.041 is $300 for a three-year period.

(b) All initial new text beginand renewal new text endlicenses, except for manufactured home installer licenses, shall be effective for two years and shall expire on March 31 of the year after the year in which the application is made. deleted text beginThe license fee for each renewal of a residential contractor, residential remodeler, or residential roofer license shall be $100 for one year and $200 for two years.deleted text end

(c) The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of residential contractor, residential remodeler, and residential roofer licenses from one year to two years. By June 30, 2011, all renewed residential contractor, residential remodeler, and residential roofer licenses shall be two-year licenses.

Sec. 44.

Subdivision 1.

Form.

new text begin(a) new text endAn applicant for a license under sections 326B.802 to 326B.885 must submit an application, under oath and accompanied by the deleted text beginlicense feedeleted text endnew text begin feesnew text endrequired by section deleted text begin326B.815deleted text endnew text begin 326B.092new text end, on a form prescribed by the commissioner. deleted text beginWithin 30 business days of receiving all required information, the commissioner must act on the license request.deleted text end

new text begin(b)new text end If one of the categories in the application does not apply, the applicant must identify the category and state the reason the category does not apply. The commissioner may refuse to issue a license if the application is not complete or contains unsatisfactory information.

Sec. 45.

Subd. 3.

Examination.

(a) Each qualifying person must deleted text beginsatisfactorily completedeleted text endnew text begin passnew text enda written examination for the type of license requested. The commissioner may establish the examination qualifications, including related education experience and education, the examination procedure, and the examination for each licensing group. The examination must include at a minimum the following areas:

(1) appropriate knowledge of technical terms commonly used and the knowledge of reference materials and code books to be used for technical information; and

(2) understanding of the general principles of business management and other pertinent state laws.

(b) Each examination must be designed for the specified type of license requested.

deleted text begin(c) An individual's passing examination results expire two years from the examination date. An individual who passes the examination but does not choose to apply to act as a qualifying person for a licensee within two years from the examination date, must, upon application provide:deleted text end

deleted text begin(1) passing examination results within two years from the date of application; ordeleted text end

deleted text begin(2) proof that the person has fulfilled the continuing education requirements in section 326B.821 in the manner required for a qualifying person of a licensee for each license period after the expiration of the examination results. deleted text end

Sec. 47.

Subdivision 1.

Bond.

(a) Licensed manufactured home installers and licensed residential roofers must post a new text beginbiennial new text endsurety bond in the name of the licensee with the commissioner, conditioned that the applicant shall faithfully perform the duties and in all things comply with all laws, ordinances, and rules pertaining to the license or permit applied for and all contracts entered into. The new text beginbiennial new text endbond must be continuous and maintained for so long as the licensee remains licensed. The aggregate liability of the surety on the bond to any and all persons, regardless of the number of claims made against the bond, may not exceed the amount of the bond. The bond may be canceled as to future liability by the surety upon 30 days' written notice mailed to the commissioner by regular mail.

(b) A licensed residential roofer must post a bond of at least $15,000.

(c) A licensed manufactured home installer must post a bond of at least $2,500.

Sec. 48.

Minnesota Statutes 2008, section 326B.865, is amended to read:

326B.865 SIGN CONTRACTOR; BOND.

(a) A sign contractor may post a compliance bond with the commissioner, conditioned that the sign contractor shall faithfully perform duties and comply with laws, ordinances, rules, and contracts entered into for the installation of signs. The bond must be renewed deleted text beginannuallydeleted text endnew text begin bienniallynew text end and maintained for so long as determined by the commissioner. The aggregate liability of the surety on the bond to any and all persons, regardless of the number of claims made against the bond, may not exceed the annual amount of the bond. The bond may be canceled as to future liability by the surety upon 30 days' written notice mailed to the commissioner by United States mail.

(b) The amount of the bond shall be $8,000. The bond may be drawn upon only by a local unit of government that requires sign contractors to post a compliance bond. The bond is in lieu of any compliance bond required by a local unit of government.

(c) For purposes of this section, "sign" means a device, structure, fixture, or placard using graphics, symbols, or written copy that is erected on the premises of an establishment including the name of the establishment or identifying the merchandise, services, activities, or entertainment available on the premises.

Sec. 49.

Subd. 2.

High pressure pipefitting business license.

Before obtaining a permit for high pressure piping work, a person must obtain or utilize a business with a high pressure piping business license.

A person must have at all times as a full-time employee at least one individual holding a contracting high pressure pipefitter competency license. Only full-time employees who hold contracting high pressure pipefitter licenses are authorized to obtain high pressure piping permits in the name of the business. The contracting high pressure pipefitter competency license holder can be the employee of only one high pressure piping business at a time. new text beginAn application for a high pressure piping business license shall include a verified statement that the applicant or licensee has complied with this subdivision.new text end

To retain its business license without reapplication, a person holding a high pressure piping business license that ceases to employ an individual holding a contracting high pressure pipefitter competency license shall have 60 days from the last day of employment of its previous contracting pipefitter competency license holder to employ another license holder. The department must be notified no later than five days after the last day of employment of the previous license holder.

No high pressure pipefitting work may be performed during any period when the high pressure pipefitting business does not have a contracting high pressure pipefitter competency license holder on staff. If a license holder is not employed within 60 days after the last day of employment of the previous license holder, the pipefitting business license shall lapse.

The board shall prescribe by rule procedures for application for and issuance of business licenses.

Sec. 50.

Subd. 4.

Registration with commissioner.

An unlicensed individual may register to assist in the practical construction and installation of high pressure piping and appurtenances while in the employ of a licensed high pressure piping business by completing and submitting to the commissioner a registration form provided by the commissionernew text begin, with all fees required by section 326B.092new text end. The board may prescribe rules, not inconsistent with this section, for the registration of unlicensed individuals.

deleted text beginAn unlicensed individual applying for initial registration shall pay the department an application fee of $50.deleted text end Applications for initial registration may be submitted at any time. Registration must be renewed annually and shall be valid for one calendar year beginning January 1. deleted text beginApplications for renewal registration must be submitted to the commissioner before December 31 of each registration period on forms provided by the commissioner, and must be accompanied by a fee of $50. There shall be no refund of fees paid.deleted text end

deleted text beginIf an application for renewal of an active or inactive journeyman high pressure pipefitter competency license or active or inactive contracting high pressure pipefitter competency license is received by the department after the date of expiration of the license, a $30 late renewal fee shall be added to the license renewal fee. deleted text end

deleted text beginPayment must accompany the application for a license or renewal of a license. There shall be no refund of fees paid.deleted text end

new text begin(1) the registration of an unlicensed individual under subdivision 4 is an entry level license;new text end

new text begin(2) a journeyman high pressure pipefitter license is a journeyman license;new text end

new text begin(3) a contracting high pressure pipefitter license is a master license; andnew text end

new text begin(4) a high pressure piping business license is a business license.new text end

Sec. 52.

Minnesota Statutes 2008, section 326B.922, is amended to read:

326B.922 LICENSE APPLICATION AND RENEWAL.

new text begin(a) new text endApplication for a contracting high pressure pipefitter deleted text begincompetency ordeleted text endnew text begin,new text end a journeyman high pressure pipefitter deleted text begincompetencydeleted text endnew text begin, or a high pressure piping businessnew text endlicense shall be made to the department, with new text beginall new text endfeesnew text begin required by section 326B.092new text end.

new text begin(b)new text end The applicant new text beginfor a contracting high pressure pipefitter or a journeyman high pressure pipefitter license new text endshall be licensed only after passing an examination developed and administered by the department in accordance with rules adopted by the board. deleted text beginA competency license issued by the department shall expire on December 31 of each year. A renewal application must be received by the department within one year after expiration of the competency license. A license that has been expired for more than one year cannot be renewed, and can only be reissued if the applicant submits a new application for the competency license, pays a new application fee, and retakes and passes the applicable license examination.deleted text end

new text begin(c) All initial contracting high pressure pipefitter licenses, journeyman high pressure pipefitter licenses, and high pressure piping business licenses are effective for more than one calendar year and expire on December 31 of the year after the year in which the application is made. The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of contracting high pressure pipefitter, journeyman high pressure pipefitter, and high pressure piping business licenses from one year to two years. By June 30, 2012, all such licenses shall be two-year licenses.new text end

Sec. 53.

Subd. 4.

Examinations, licensing.

new text beginEvery individual that operates a boat must hold a current master's license issued by the commissioner, unless the individual holds a valid, current charter boat captain's license issued by the United States Coast Guard. new text endThe commissioner shall develop and administer an examination for all masters of boats carrying passengers for hire on the inland waters of the state as to their qualifications and fitness. If found qualified and competent to perform their duties as a master of a boat carrying passengers for hire, they shall be issued a license authorizing them to act as such on the inland waters of the state. All initial master's licenses shall be for two years. The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of master's licenses from one year to two years. By June 30, 2011, all renewed master's licenses shall be two-year licenses. Fees for the original issue and renewal of the license authorized under this section shall be pursuant to section deleted text begin326B.986, subdivision 2deleted text endnew text begin 326B.092new text end.

Sec. 54.

Subd. 2.

Applications.

Any individual who desires an engineer's license shall submit an application on a written or electronic form prescribed by the commissioner, deleted text beginat least 15 days before the requested exam date. If the commissioner approves the applicant for examination, the applicant may take the examination on one occasion within one year from the date the commissioner receives the applicationdeleted text endnew text begin with all fees required by section 326B.092new text end.

Sec. 55.

Minnesota Statutes 2008, section 326B.978, is amended by adding a subdivision to read:

new text beginSubd. 19.new text end

new text beginApplicability.new text end

new text beginThis section shall not apply to traction or hobby boiler engineer's licenses or provisional licenses.new text end

deleted text begin(b) An engineer's license, except a provisional license, may be renewed upon application and payment of a renewal fee of $20 for one year or $40 for two years. If the renewal fee is paid later than 30 days after expiration, then a late fee of $15 will be added to the renewal fee.deleted text end

new text begin(a) For purposes of calculating license fees and renewal license fees required under section 326B.092:new text end

new text begin(1) the boiler special engineer license is an entry level license;new text end

new text begin(b) Notwithstanding section 326B.092, subdivision 7, paragraph (a), the license duration for steam traction and hobby engineer licenses are one year only for the purpose of calculating license fees under section 326B.092, subdivision 7, paragraph (b).new text end

Sec. 57.

Subd. 17.

Installation.

"Installation" of a manufactured home means deleted text beginassemblydeleted text endnew text begininstallation or reinstallationnew text end, at the site of occupancy, of all portions of a manufactured home, connection of the manufactured home to existing utility connections and installation of support and/or anchoring systems.

Sec. 58.

Minnesota Statutes 2008, section 327.31, is amended by adding a subdivision to read:

new text beginSubd. 21.new text end

new text beginUsed manufactured home.new text end

new text begin"Used manufactured home" means a home being offered for sale not less than 24 months after the first purchaser took legal ownership or possession of the home.new text end

Sec. 59.

Minnesota Statutes 2008, section 327.31, is amended by adding a subdivision to read:

new text beginSubd. 22.new text end

new text beginSeller.new text end

new text begin"Seller" means either the homeowner, manufactured home retailer or dealer, broker, or limited dealer or retailer.new text end

Sec. 60.

Subdivision 1.

Requirementnew text begin; new manufactured homesnew text end.

No person shall selldeleted text begin,deleted text endor offer for saledeleted text begin,deleted text end in this statedeleted text begin,deleted text end any new text beginnew new text endmanufactured home deleted text beginmanufactured after July 1, 1972,deleted text endnew text begin ornew text end manufacture any manufactured home in this state deleted text beginor install for occupancy any manufactured home manufactured after July 1, 1972, in any manufactured home park in this statedeleted text end unless the manufactured home complies with the Manufactured Home Building Code anddeleted text begin:deleted text endnew text begin bears a label as required by the secretary.new text end

deleted text begin(a) bears a seal issued by the commissioner, and is, whenever possible, accompanied by a certificate by the manufacturer or dealer, both evidencing that it complies with the Manufactured Home Building Code; or deleted text end

deleted text begin(b) if manufactured after June 14, 1976, bears a label as required by the secretary. deleted text end

Sec. 61.

Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision to read:

new text beginSubd. 1a.new text end

new text beginRequirement; used manufactured homes.new text end

new text beginNo person shall sell or offer for sale in this state any used manufactured home manufactured after June 14, 1976, or install for occupancy any used manufactured home manufactured after June 14, 1976, unless the used manufactured home complies with the Notice of Compliance Form as provided in this subdivision. If manufactured after June 14, 1976, the home must bear a label as required by the secretary. The Notice of Compliance Form shall be signed by the seller and purchaser indicating which party is responsible for either making or paying for any necessary corrections prior to the sale and transferring ownership of the manufactured home.new text end

new text beginThe Notice of Compliance Form shall be substantially in the following form:new text end

new text begin"Notice of Compliance Form as required in Minnesota Statutes, section 327.32, subdivision 1.new text end

new text beginThis notice must be completed and signed by the purchaser(s) and the seller(s) of the used manufactured home described in the purchase agreement and on the bottom of this notice before the parties transfer ownership of a used manufactured home constructed after June 14, 1976.new text end

new text beginElectric ranges and clothes dryers must have required four-conductor cords and plugs.new text end

new text beginComplies ..........new text end

new text beginCorrection required ..........new text end

new text beginInitialed by Responsible Party: Buyer ..........new text end

new text beginSeller ..........new text end

new text beginSolid fuel-burning fireplaces or stoves must be listed for use in manufactured homes, Code of Federal Regulations, title 24, section 3280.709(g), and installed correctly in accordance with their listing or standards (i.e., chimney, doors, hearth, combustion, or intake, etc., Code of Federal Regulations, title 24, section 3280.709(g)).new text end

new text beginComplies ..........new text end

new text beginCorrection required ..........new text end

new text beginInitialed by Responsible Party: Buyer ..........new text end

new text beginSeller ..........new text end

new text beginGas water heaters and furnaces must be listed for manufactured home use, Code of Federal Regulations, title 24, section 3280.709(a) and (d)(1) and (2), and installed correctly, in accordance with their listing or standards.new text end

new text beginComplies ..........new text end

new text beginCorrection required ..........new text end

new text beginInitialed by Responsible Party: Buyer ..........new text end

new text beginSeller ..........new text end

new text beginSmoke alarms are required to be installed and operational in accordance with Code of Federal Regulations, title 24, section 3280.208.new text end

new text beginComplies ..........new text end

new text beginCorrection required ..........new text end

new text beginInitialed by Responsible Party: Buyer ..........new text end

new text beginSeller ..........new text end

new text beginCarbon monoxide alarms or CO detectors that are approved and operational are required to be installed within ten feet of each room lawfully used for sleeping purposes.new text end

new text beginComplies ..........new text end

new text beginCorrection required ..........new text end

new text beginInitialed by Responsible Party: Buyer ..........new text end

new text beginSeller ..........new text end

new text beginEgress windows are required in every bedroom with at least one operable window with a net clear opening of 20 inches wide and 24 inches high, five square feet in area, with the bottom of windows opening no more than 36 inches above the floor. Locks, latches, operating handles, tabs, or other operational devices shall not be located more than 54 inches above the finished floor.new text end

new text beginComplies ..........new text end

new text beginCorrection required ..........new text end

new text beginInitialed by Responsible Party: Buyer ..........new text end

new text beginSeller ..........new text end

new text beginThe furnace compartment of the home is required to have interior finish with a flame spread rating not exceeding 25 feet, as specified in the 1976 United States Department of Housing and Urban Development Code governing manufactured housing construction.new text end

new text beginComplies ..........new text end

new text beginCorrection required ..........new text end

new text beginInitialed by Responsible Party: Buyer ..........new text end

new text beginSeller ..........new text end

new text beginThe water heater enclosure in this home is required to have interior finish with a flame spread rating not exceeding 25 feet, as specified in the 1976 United States Department of Housing and Urban Development Code governing manufactured housing construction.new text end

new text beginComplies ..........new text end

new text beginCorrection required ..........new text end

new text beginInitialed by Responsible Party: Buyer ..........new text end

new text beginSeller ..........new text end

new text beginThe home complies with the snowload and heat zone requirements for the state of Minnesota as indicated by the data plate. new text end

new text beginComplies ..........new text end

new text beginCorrection required ..........new text end

new text beginInitialed by Responsible Party: Buyer ..........new text end

new text beginSeller ..........new text end

new text beginThe parties to this agreement have initialed all required sections and agree by their signature to complete any necessary corrections prior to the sale or transfer of ownership of the home described below as listed in the purchase agreement. The state of Minnesota or a local building official has the authority to inspect the home in the manner described in Minnesota Statutes, section 327.33, prior to or after the sale to ensure compliance was properly executed as provided under the Manufactured Home Building Code.new text end

new text beginSignature of Purchaser(s) of Homenew text end

new text begin..............................date..............................new text end

new text begin..............................date..............................new text end

new text begin...................................................................new text end

new text begin...................................................................new text end

new text beginPrint name as appears on purchase agreementnew text end

new text beginPrint name as appears on purchase agreementnew text end

new text beginSignature of Seller(s) of Homenew text end

new text begin..............................date..............................new text end

new text begin..............................date..............................new text end

new text begin...................................................................new text end

new text begin...................................................................new text end

new text beginPrint name and license number, if applicablenew text end

new text beginPrint name and license number, if applicablenew text end

new text begin(Street address of home at time of sale)new text end

new text begin................................................................................................................................new text end

new text begin(City/State/Zip).......................................................................................................new text end

new text beginName of manufacturer of home............................................................................new text end

new text beginModel and Year.....................................................................................................new text end

Sec. 62.

Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision to read:

new text beginSubd. 1b.new text end

new text beginAlternative design plan.new text end

new text beginAn alternative frost-free design slab that is submitted to the department, stamped by a licensed professional engineer or architect, and is in compliance with either the federal installation standards in effect at the date of manufacture or the Minnesota State Building Code, when applicable, shall be issued a permit by the department within ten days. new text end

Sec. 63.

Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision to read:

new text beginSubd. 1c.new text end

new text beginManufacturer's installation instructions; new home.new text end

new text beginAll new single-section manufactured homes and new multisection manufactured homes shall be installed in compliance with either the manufacturer's installation instructions in effect at the date of manufacture or, when applicable, the Minnesota State Building Code.new text end

Sec. 64.

Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision to read:

new text beginSubd. 1d.new text end

new text beginManufacturer's installation instructions; used multisection homes.new text end

new text beginAll used multisection manufactured homes shall be installed in compliance with the manufacturer's installation instructions in effect at the date of manufacture, approved addenda or, when applicable, the Minnesota State Building Code.new text end

Sec. 65.

Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision to read:

new text beginSubd. 1e.new text end

new text beginReinstallation requirements for single-section used manufactured homes.new text end

new text begin(a) All single-section used manufactured homes reinstalled less than 24 months from the date of installation by the first purchaser must be reinstalled in compliance with subdivision 1c. All single-section used manufactured homes reinstalled more than 24 months from the date of installation by the first purchaser may be reinstalled without a frost-protected foundation if the home is reinstalled in compliance with Minnesota Rules, chapter 1350, for above frost-line installations and the notice requirement of subdivision 1f is complied with by the seller and the purchaser of the single-section used manufactured home.new text end

new text begin(b) The installer shall affix an installation seal issued by the department to the outside of the home as required by the Minnesota State Building Code. The certificate of installation issued by the installer of record shall clearly state that the home has been reinstalled with an above frost-line foundation. Fees for inspection of a reinstallation and for issuance of reinstallation seals shall follow the requirements of sections 326B.802 to 326B.885. Fees for review of plans, specifications, and on-site inspections shall be those as specified in section 326B.153, subdivision 1, paragraph (c). Whenever an installation certificate for an above frost-line installation is issued to a single-section used manufactured home being listed for sale, the purchase agreement must disclose that the home is installed on a nonfrost-protected foundation and recommend that the purchaser have the home inspected to determine the effects of frost on the home.new text end

Sec. 66.

Minnesota Statutes 2008, section 327.32, is amended by adding a subdivision to read:

new text beginSubd. 1f.new text end

new text beginNotice requirement.new text end

new text beginThe seller of the single-section used manufactured home being reinstalled under subdivision 1e shall provide the following notice to the purchaser and secure signatures of all parties to the purchase agreement on or before signing a purchase agreement prior to submitting an application for an installation certificate. Whenever a current owner of a manufactured home reinstalls the manufactured home under subdivision 1e, the current owner is not required to comply with the notice requirement under this subdivision. The notice shall be in at least 14-point font, except the heading, "WHICH MAY VOID WARRANTY," must be in capital letters, in 20-point font. The notice must be printed on a separate sheet of paper in a color different than the paper on which the purchase agreement is printed. The notice becomes a part of the purchase agreement and shall be substantially in the following form:new text end

new text begin"Notice of Reinstalling of a Single-Section Used Manufactured Home Above Frost-Line;new text end

new text beginWHICH MAY VOID WARRANTYnew text end

new text beginIt is recommended that the single-section used manufactured home being reinstalled follow the instructions in the manufacturer's installation manual. By signing this notice, the purchaser(s) are acknowledging they have elected to use footings placed above the local frost line in accordance with the Minnesota State Building Code.new text end

new text beginThe seller has explained the differences between the manufacturer's installation instructions and the installation system selected by the purchaser(s) with respect to possible effects of frost on the manufactured home. new text end

new text beginThe purchaser(s) acknowledge by signing this notice that there is no manufacturer's original warranty remaining on the home and recognize that any other extended or ancillary warranty could be adversely affected if any applicable warranty stipulates that the home be installed in accordance with the manufacturer's installation manual to remain effective.new text end

new text beginAfter the reinstallation of the manufactured home, it is highly recommended that the purchaser(s) have a licensed manufactured home installer recheck the home's installation for any releveling needs or anchoring system adjustments each freeze-thaw cycle. new text end

new text beginThe purchaser(s) of the used manufactured home described below that is being reinstalled acknowledge they have read this notice and have been advised to contact the manufacturer of the home and/or the Department of Labor and Industry if they desire additional information before signing this notice. It is the intent of this notice to inform the purchaser(s) that the purchaser(s) elected not to use a frost-protected foundation system for the reinstallation of the manufactured home as originally required by the home's installation manual.new text end

new text beginPlain language notice.new text end

new text beginI understand that because this home will be installed with footings placed above the local frost line, this home may be subject to adverse effects from frost heave that may damage this home. Purchaser(s) initials: .......new text end

new text beginI understand that the installation of this home with footings placed above the local frost line could affect my ability to obtain a mortgage or mortgage insurance on this home. Purchaser(s) initials: .......new text end

new text beginI understand that the installation of this home with footings placed above the local frost line could void my warranty on the home if any warranty is still in place on this home. Purchaser(s) initials: .......new text end

new text beginSignature of Purchaser(s)new text end

new text begin..............................date..............................new text end

new text begin..............................date..............................new text end

new text begin...................................................................new text end

new text begin...................................................................new text end

new text beginPrint namenew text end

new text beginPrint namenew text end

new text begin(Street address of location where manufactured home is being reinstalled)new text end

new text begin..............................................................................................................................new text end

new text begin(City/State/Zip)....................................................................................................new text end

new text beginName of manufacturer of home.........................................................................new text end

new text beginModel and year...................................................................................................new text end

new text beginSerial number.....................................................................................................new text end

new text beginName of licensed installer and license number or homeowner responsible for the installation of the home as described above.new text end

new text beginInstaller name:...................................................................................................new text end

new text beginLicense number:................................................................................................"new text end

Sec. 67.

Subdivision 1.

Generally.

It shall be a misdemeanor for any person,

(a) to sell, lease, or offer to sell or lease, any manufactured home manufactured after deleted text beginJuly 1, 1972deleted text endnew text begin June 14, 1976,new text end which does not comply with the Manufactured Home Building Code or which does not bear a seal or label as required by sections 327.31 to 327.34, unless the action is subject to the provisions of section 327.35;

(b) to affix a seal or label, or cause a seal or label to be affixed, to any manufactured home which does not comply with the Manufactured Home Building Code unless the action is subject to the provisions of section 327.35;

(c) to alter a manufactured home manufactured after deleted text beginJuly 1, 1972deleted text endnew text begin June 14, 1976new text end, in a manner prohibited by sections 327.31 to 327.34; new text beginornew text end

(d) to fail to correct a Manufactured Home Building Code violation in a manufactured home manufactured after deleted text beginJuly 1, 1972deleted text endnew text begin June 14, 1976new text end, which is owned, manufactured, or sold by that person, within 40 days of being ordered to do so in writing by an authorized representative of the commissioner, unless the correction is subject to the provisions of section 327.35deleted text begin; ordeleted text endnew text begin.new text end

deleted text begin(e) to interfere with, obstruct, or hinder any authorized representative of the commissioner in the performance of duties relating to manufactured homes manufactured after July 1, 1972, and prior to June 15, 1976.deleted text end

Sec. 68.

Subd. 2.

Subagency licenses.

Any dealer who has a place of business at more than one location shall designate one location as its principal place of business, one name as its principal name, and all other established places of business as subagencies. A subagency license shall be required for each subagency. new text beginSubagency license renewal must coincide with the principal license date. new text endNo dealer shall do business as a dealer under any other name than the name on its license.

Sec. 69.

Subd. 7.

new text beginIn addition to the requirements of this section, new text endeach application for a license or license renewal must be accompanied by deleted text begina fee in an amount established by subdivision 7adeleted text endnew text begin all applicable fees required by section 326B.092new text end. The fees shall be set in an amount which over the fiscal biennium will produce revenues approximately equal to the expenses which the commissioner expects to incur during that fiscal biennium while administering and enforcing sections 327B.01 to 327B.12. deleted text beginThe commissioner shall grant or deny a license application or a renewal application within 60 days of its filing.deleted text end If the license is granted, the commissioner shall license the applicant as a dealer or manufacturer for the remainder of the licensure period. Upon application by the licensee, the commissioner shall renew the license for a two-year period, if:

(1) the renewal application satisfies the requirements of subdivisions 3 and 4;

(2) the renewal applicant has made all listings, registrations, notices and reports required by the commissioner during the preceding licensure period; and

(3) the renewal applicant has paid all fees owed pursuant to sections 327B.01 to 327B.12 and all taxes, arrearages, and penalties owed to the state.

(b) All initial limited dealer licenses shall be effective for more than one calendar year and shall expire on December 31 of the year after the year in which the application is made.

(c) deleted text beginThe license fee for each renewed limited dealer license shall be $100 for one year and $200 for two years.deleted text endnew text begin For the purposes of calculating fees under section 326B.092, any license issued under this section is a business license, except that a subagency license is a master license.new text end The commissioner shall in a manner determined by the commissioner, without the need for any rulemaking under chapter 14, phase in the renewal of limited dealer licenses from one year to two years. By June 30, 2011, all renewed limited dealer licenses shall be two-year licenses.

deleted text begin(d) All fees are not refundable.deleted text end

Sec. 71.

Subd. 8.

Limited dealer's license.

The commissioner shall issue a limited dealer's license to an owner of a manufactured home park authorizing the licensee as principal only to engage in the sale, offering for sale, soliciting, or advertising the sale of used manufactured homes located in the owned manufactured home park. The licensee must be the title holder of the homes and may engage in no more than ten sales during each year of the two-year licensure period. An owner may, upon payment of the applicable fee and compliance with this subdivision, obtain a separate license for each owned manufactured home park and is entitled to sell up to 20 homes per license period provided that only one limited dealer license may be issued for each park. The license shall be issued after:

(1) receipt of an application on forms provided by the commissioner containing the following information:

(i) the identity of the applicant;

(ii) the name under which the applicant will be licensed and do business in this state;

(iii) the name and address of the owned manufactured home park, including a copy of the park license, serving as the basis for the issuance of the license;

(iv) the name, home, and business address of the applicant;

(v) the name, address, and telephone number of one individual that is designated by the applicant to receive all communications and cooperate with all inspections and investigations of the commissioner pertaining to the sale of manufactured homes in the manufactured home park owned by the applicant;

(vi) whether the applicant or its designated individual has been convicted of a crime within the previous ten years that is either related directly to the business for which the license is sought or involved fraud, misrepresentation or misuse of funds, or has suffered a judgment in a civil action involving fraud, misrepresentation, or conversion within the previous five years or has had any government license or permit suspended or revoked as a result of an action brought by a federal or state governmental agency in this or any other state within the last five years; and

(vii) the applicant's qualifications and business history, including whether the applicant or its designated individual has ever been adjudged bankrupt or insolvent, or has any unsatisfied court judgments outstanding against it or them;

(2) payment of the license fee established by subdivision 7a; and

(3) provision of a surety bond in the amount of $5,000. A separate surety bond must be provided for each limited license.

The applicant need not comply with section 327B.04, subdivision 4, paragraph (e). The holding of a limited dealer's license does not satisfy the requirement contained in section 327B.04, subdivision 4, paragraph (e), for the licensee or salespersons with respect to obtaining a dealer license. The commissioner may, upon application for a renewal of a license, require only a verification that copies of sales documents have been retained and payment of the renewal deleted text beginfeedeleted text endnew text begin feesnew text end established by deleted text beginsubdivision 7adeleted text endnew text begin section 326B.092new text end. "Sales documents" mean only the safety feature disclosure form defined in section 327C.07, subdivision 3a, title of the home, financing agreements, and purchase agreements.

The license holder shall, upon request of the commissioner, make available for inspection during business hours sales documents required to be retained under this subdivision.

Sec. 72.

327B.041 MANUFACTURED HOME INSTALLERS.

(a) Manufactured home installers are subject to all of the new text beginfees in section 326B.092 and the new text endrequirements of sections 326B.802 to 326B.885, except for the following:

(1) manufactured home installers are not subject to the continuing education requirements of section 326B.821, but are subject to the continuing education requirements established in rules adopted under section 327B.10;

(2) the examination requirement of section 326B.83, subdivision 3, for manufactured home installers shall be satisfied by successful completion of a written examination administered and developed specifically for the examination of manufactured home installers. The examination must be administered and developed by the commissioner. The commissioner and the state building official shall seek advice on the grading, monitoring, and updating of examinations from the Minnesota Manufactured Housing Association;

(3) a local government unit may not place a surcharge on a license fee, and may not charge a separate fee to installers;

(4) a dealer or distributor who does not install or repair manufactured homes is exempt from licensure under sections 326B.802 to 326B.885;

(6) manufactured home installers are not subject to the contractor recovery fund in section 326B.89.

(b) The commissioner may waive all or part of the requirements for licensure as a manufactured home installer for any individual who holds an unexpired license or certificate issued by any other state or other United States jurisdiction if the licensing requirements of that jurisdiction meet or exceed the corresponding licensing requirements of the departmentnew text begin and the individual complies with section 326B.092, subdivisions 1 and 3 to 7. For the purposes of calculating fees under section 326B.092, licensure as a manufactured home installer is a business licensenew text end.

new text beginEFFECTIVE DATE.new text end

new text beginParagraphs (a) to (c) are effective January 1, 2012, except that the repeal of Minnesota Statutes, sections 327.32, subdivision 4, and 327C.07, subdivisions 3a and 8, are effective July 1, 2010.new text end

Sec. 76. new text beginEFFECTIVE DATE.new text end

new text beginSections 3 to 10, 12 to 17, and 19 to 56 are effective January 1, 2012.new text end

ARTICLE 4

MINNESOTA S.A.F.E. MORTGAGE LICENSING ACT OF 2010

Section 1.

new text begin[58A.01] TITLE.new text end

new text beginThis chapter may be cited as the "Minnesota Secure and Fair Enforcement for Mortgage Licensing Act of 2010" or "Minnesota S.A.F.E. Mortgage Licensing Act of 2010."new text end

Sec. 2.

new text begin[58A.02] DEFINITIONS.new text end

new text beginSubdivision 1.new text end

new text beginApplication.new text end

new text beginFor purposes of this chapter, the definitions in subdivisions 2 to 15 have the meanings given them.new text end

new text beginSubd. 2.new text end

new text beginDepository institution.new text end

new text begin"Depository institution" has the meaning given in United States Code, title 12, section 1813, and includes a credit union.new text end

new text beginSubd. 3.new text end

new text beginFederal banking agencies.new text end

new text begin"Federal banking agencies" means the Board of Governors of the Federal Reserve System, the comptroller of the currency, the director of the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Deposit Insurance Corporation.new text end

new text beginSubd. 4.new text end

new text beginImmediate family member.new text end

new text begin"Immediate family member" means a spouse, child, sibling, a parent, grandparent, or grandchild. This includes stepparents, stepchildren, stepsiblings, and adoptive relationships.new text end

new text beginSubd. 5.new text end

new text beginIndividual.new text end

new text begin"Individual" means a natural person.new text end

new text beginSubd. 6.new text end

new text beginLoan processor or underwriter.new text end

new text begin"Loan processor or underwriter" means an individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed or exempt from licensing under chapter 58. For purposes of this subdivision, the term "clerical or support duties" may include after the receipt of an application:new text end

new text begin(1) the receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan; andnew text end

new text begin(2) communicating with a consumer to obtain the information necessary for the processing or underwriting of a loan, to the extent that the communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms.new text end

new text beginSubd. 7.new text end

new text beginMortgage loan originator.new text end

new text begin"Mortgage loan originator":new text end

new text begin(1) means an individual who for compensation or gain or in the expectation of compensation or gain:new text end

new text begin(ii) offers or negotiates terms of a residential mortgage loan;new text end

new text begin(2) does not include an individual engaged solely as a loan processor or underwriter except as otherwise provided in section 58A.03, subdivision 3;new text end

new text begin(3) does not include a person or entity that only performs real estate brokerage activities and is licensed or registered according to Minnesota law, unless the person or entity is compensated by a lender, a mortgage broker, or other mortgage loan originator or by an agent of the lender, mortgage broker, or other mortgage loan originator;new text end

new text begin(4) does not include a person or entity solely involved in extensions of credit relating to timeshare plans, as that term is defined in United States Code, title 11, section 101(53D); andnew text end

new text begin(5) does not include a person who merely assists, without advising, the consumer in locating or understanding a loan application, and does not do anything that would be considered to be acting as a mortgage loan originator under federal or state laws. This clause is subject to final approval by the United States Department of Housing and Urban Development, and is severable to the extent that the department determines that it is not compliant with federal law.new text end

new text beginSubd. 8.new text end

new text beginNationwide Mortgage Licensing System and Registry.new text end

new text begin"Nationwide Mortgage Licensing System and Registry" means a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of licensed mortgage loan originators.new text end

new text beginSubd. 9.new text end

new text beginNontraditional mortgage product.new text end

new text begin"Nontraditional mortgage product" means a mortgage product other than a 30-year fixed rate mortgage loan.new text end

new text beginSubd. 9a.new text end

new text beginOffers or negotiates terms of a residential mortgage loan for compensation or gain.new text end

new text begin"Offers or negotiates terms of a residential mortgage loan for compensation or gain" means an individual:new text end

new text begin(1)(i) presents for acceptance by a borrower or prospective borrower residential mortgage loan terms;new text end

new text begin(ii) communicates directly or indirectly with a borrower or prospective borrower for the purpose of reaching an understanding about prospective residential mortgage loan terms; ornew text end

new text begin(iii) recommends, refers, or steers a borrower to a particular lender or set of residential mortgage loan terms, in accordance with a duty to or incentive from any person other than the borrower or prospective borrower; andnew text end

new text begin(2) receives or expects to receive payment of money or anything of value in connection with the activities described in clause (1) or as a result of any residential mortgage loan terms entered into as a result of such activities.new text end

new text beginThis subdivision is subject to final approval by the United States Department of Housing and Urban Development, and is severable to the extent that the department determines that it is not compliant with federal law.new text end

new text beginReal estate brokerage activity.new text end

new text begin(1) acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property;new text end

new text begin(2) bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;new text end

new text begin(3) negotiating, on behalf of a party, a portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property other than in connection with providing financing with respect to the transaction;new text end

new text begin(4) engaging in an activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; andnew text end

new text begin(5) offering to engage in any activity, or act in any capacity, described in clause (1), (2), (3), or (4).new text end

new text beginSubd. 12.new text end

new text beginRegistered mortgage loan originator.new text end

new text begin(1) meets the definition of mortgage loan originator and is an employee of:new text end

new text begin(i) a depository institution;new text end

new text begin(ii) a subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency; ornew text end

new text begin(iii) an institution regulated by the Farm Credit Administration; andnew text end

new text begin(2) is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry.new text end

new text beginSubd. 13.new text end

new text beginResidential mortgage loan.new text end

new text begin"Residential mortgage loan" means a loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling, as defined in United States Code, title 15, section 1602(v), or residential real estate upon which a dwelling is constructed or intended to be constructed.new text end

new text beginSubd. 14.new text end

new text beginResidential real estate.new text end

new text begin"Residential real estate" means real property located in Minnesota, upon which a dwelling is constructed or is intended to be constructed.new text end

new text beginSubd. 14a.new text end

new text beginTakes a residential mortgage loan application.new text end

new text begin"Takes a residential mortgage loan application" means the individual receives a residential mortgage loan application for the purpose of deciding, or influencing or soliciting the decision of another, whether to extend an offer of residential mortgage loan terms to a borrower or prospective borrower, or to accept the terms offered by a borrower or prospective borrower in response to a solicitation, whether the application is received directly or indirectly from the borrower or prospective borrower. This subdivision is subject to final approval by the United States Department of Housing and Urban Development, and is severable to the extent that the department determines that it is not compliant with federal law.new text end

new text beginSubd. 15.new text end

new text beginUnique identifier.new text end

new text begin"Unique identifier" means a number or other identifier assigned by protocols established by the Nationwide Mortgage Licensing System and Registry.new text end

Sec. 3.

new text begin[58A.03] LICENSE AND REGISTRATION REQUIRED.new text end

new text beginSubdivision 1.new text end

new text beginGenerally.new text end

new text beginAn individual, unless specifically exempted from this chapter under subdivision 2, shall not engage in the business of a mortgage loan originator with respect to a dwelling located in this state without first obtaining and maintaining a license under this chapter. An individual may not engage in the mortgage loan business unless the individual is employed and supervised by an entity which is either licensed or exempt from licensing under chapter 58. A licensed mortgage loan originator must register with and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing System and Registry.new text end

new text beginSubd. 2.new text end

new text beginExemptions.new text end

new text beginThe following are exempt from this chapter:new text end

new text begin(1) a registered mortgage loan originator, when acting for an entity described in section 58A.02, subdivision 12, clause (1);new text end

new text begin(2) an individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual;new text end

new text begin(3) an individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual's residence; new text end

new text begin(4) a licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of the lender, mortgage broker, or other mortgage loan originator; andnew text end

new text begin(5) an employee of a nonprofit organization exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986, or a local unit of government, that is not otherwise engaged in the mortgage loan business, engaged in the financing of housing for low- and moderate-income households or housing counseling under programs designed specifically for those purposes, to the extent exempted by the commissioner by rule, advisory ruling, or interpretation, after taking into consideration any law, rule, advisory ruling, or interpretation by the United States Department of Housing and Urban Development.new text end

new text beginSubd. 3.new text end

new text beginIndependent contractor loan processors or underwriters.new text end

new text beginA loan processor or underwriter who is an independent contractor may not engage in the activities of a loan processor or underwriter unless the independent contractor loan processor or underwriter obtains and maintains a license under subdivision 1. An independent contractor loan processor or underwriter licensed as a mortgage loan originator must have and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing System and Registry.new text end

new text beginEFFECTIVE DATE.new text end

new text beginIn order to facilitate an orderly transition to licensing and minimize disruption in the mortgage marketplace, the effective date for subdivision 1 is July 31, 2010, or a later date approved by the Secretary of the U.S. Department of Housing and Urban Development, under the authority granted in Public Law 110-289, section 1508(a).new text end

Sec. 4.

new text begin[58A.04] STATE LICENSE AND REGISTRATION APPLICATION AND ISSUANCE.new text end

new text beginSubdivision 1.new text end

new text beginApplication form.new text end

new text beginAn applicant for a license shall apply in a form as prescribed by the commissioner. The form must contain content as set forth by rule, instruction, or procedure of the commissioner and may be changed or updated as necessary by the commissioner in order to carry out the purposes of this chapter.new text end

new text beginSubd. 2.new text end

new text beginCommissioner may establish relationships or contracts.new text end

new text beginIn order to fulfill the purposes of this chapter, the commissioner is authorized to establish relationships or contracts with the Nationwide Mortgage Licensing System and Registry or other entities designated by the Nationwide Mortgage Licensing System and Registry to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this chapter.new text end

new text beginSubd. 3.new text end

new text beginWaive or modify requirements.new text end

new text beginFor the purpose of participating in the Nationwide Mortgage Licensing System and Registry, the commissioner is authorized to waive or modify, in whole or in part, by rule or order, any or all of the requirements of this chapter and to establish new requirements as reasonably necessary to participate in the Nationwide Mortgage Licensing System and Registry.new text end

new text beginSubd. 4.new text end

new text beginBackground checks.new text end

new text beginIn connection with an application for licensing as a mortgage loan originator, the applicant shall, at a minimum, furnish to the Nationwide Mortgage Licensing System and Registry information concerning the applicant's identity, including:new text end

new text begin(1) fingerprints for submission to the Federal Bureau of Investigation, and a governmental agency or entity authorized to receive the information for a state, national, and international criminal history background check; andnew text end

new text begin(2) personal history and experience in a form prescribed by the Nationwide Mortgage Licensing System and Registry, including the submission of authorization for the Nationwide Mortgage Licensing System and Registry and the commissioner to obtain:new text end

new text begin(i) an independent credit report obtained from a consumer reporting agency described in United States Code, title 15, section 1681a(p); andnew text end

new text begin(ii) information related to administrative, civil, or criminal findings by a governmental jurisdiction.new text end

new text beginSubd. 5.new text end

new text beginAgent for purposes of requesting and distributing criminal information.new text end

new text beginFor the purposes of this section and in order to reduce the points of contact which the Federal Bureau of Investigation may have to maintain for purposes of subdivision 4, clauses (1) and (2), the commissioner may use the Nationwide Mortgage Licensing System and Registry as a channeling agent for requesting information from and distributing information to the Department of Justice or any governmental agency.new text end

new text beginSubd. 6.new text end

new text beginAgent for purposes of requesting and distributing noncriminal information.new text end

new text beginFor the purposes of this section and in order to reduce the points of contact which the commissioner may have to maintain for purposes of subdivision 4, clause (2)(i) and (ii), the commissioner may use the Nationwide Mortgage Licensing System and Registry as a channeling agent for requesting and distributing information to and from any source so directed by the commissioner.new text end

Sec. 5.

new text begin[58A.045] TERM OF LICENSE AND FEES.new text end

new text beginSubdivision 1.new text end

new text beginTerm.new text end

new text beginLicenses for mortgage loan originators issued under this chapter expire on December 31 and are renewable on January 1 of each year after that date.new text end

new text beginSubd. 2.new text end

new text beginFees.new text end

new text beginThe following fees must be paid to the commissioner:new text end

new text begin(1) for a mortgage loan originator license, $90; andnew text end

new text begin(2) for a renewal mortgage loan originator license, $50.new text end

Sec. 6.

new text begin[58A.05] ISSUANCE OF LICENSE.new text end

new text beginThe commissioner shall not issue a mortgage loan originator license unless the commissioner finds at a minimum, that:new text end

new text begin(1) the applicant has never had a mortgage loan originator license revoked in a governmental jurisdiction, except that a subsequent formal vacation of a revocation shall not be deemed a revocation;new text end

new text begin(2) the applicant has not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court:new text end

new text begin(i) during the seven-year period preceding the date of the application for licensing and registration;new text end

new text begin(ii) at any time preceding the date of application, if the felony involved an act of fraud, dishonesty, or a breach of trust, or money laundering; ornew text end

new text begin(iii) provided that a pardon of a conviction is not a conviction for purposes of this clause;new text end

new text begin(3) the applicant has demonstrated financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this chapter. For purposes of this chapter, a person has shown that the person is not financially responsible when the person has shown a disregard in the management of the person's own financial condition. A determination that an individual has not shown financial responsibility may include, but is not limited to:new text end

new text begin(i) current outstanding judgments, except judgments solely as a result of medical expenses;new text end

new text begin(ii) current outstanding tax liens or other government liens and filings;new text end

new text begin(iii) foreclosures within the past three years; andnew text end

new text begin(iv) a pattern of seriously delinquent accounts within the past three years;new text end

new text begin(4) the applicant has completed the prelicensing education requirement described in section 58A.06;new text end

new text begin(5) the applicant has passed a written test that meets the test requirement described in section 58A.07; andnew text end

new text begin(6) the applicant has met the surety bond requirement as required under section 58A.13.new text end

Sec. 7.

new text begin[58A.06] PRELICENSING AND RELICENSING EDUCATION OF LOAN ORIGINATORS.new text end

new text beginSubdivision 1.new text end

new text beginMinimum educational requirements.new text end

new text beginIn order to meet the prelicensing education requirement referred to in section 58A.05, clause (4), a person shall complete at least 20 hours of education approved according to subdivision 2, that includes at least:new text end

new text begin(1) three hours of federal law and regulations;new text end

new text begin(2) three hours of ethics, which includes instruction on fraud, consumer protection, and fair lending issues; andnew text end

new text begin(3) two hours of training related to lending standards for the nontraditional mortgage product marketplace.new text end

new text beginSubd. 2.new text end

new text beginApproved educational courses.new text end

new text beginFor purposes of subdivision 1, prelicensing education courses must be reviewed, and approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards. Review and approval of a prelicensing education course must include review and approval of the course provider.new text end

new text beginSubd. 3.new text end

new text beginApproval of employer and affiliate educational courses.new text end

new text beginNothing in this section precludes a prelicensing education course, as approved by the Nationwide Mortgage Licensing System and Registry, that is provided by the employer of the applicant or an entity that is affiliated with the applicant by an agency contract, or any subsidiary or affiliate of the employer or entity.new text end

new text beginSubd. 4.new text end

new text beginVenue of education.new text end

new text beginPrelicensing education may be offered in a classroom, online, or by any other means approved by the Nationwide Mortgage Licensing System and Registry.new text end

new text beginSubd. 5.new text end

new text beginReciprocity of education.new text end

new text beginThe prelicensing education requirements approved by the Nationwide Mortgage Licensing System and Registry in subdivision 1 for a state must be accepted as credit toward completion of prelicensing education requirements in Minnesota.new text end

new text beginSubd. 6.new text end

new text beginRelicensing education requirements.new text end

new text beginA person previously licensed under this chapter after the effective date of this chapter applying to be licensed again must prove that the person has completed all of the continuing education requirements for the year in which the license was last held.new text end

Sec. 8.

new text begin[58A.07] TESTING OF LOAN ORIGINATORS.new text end

new text beginSubdivision 1.new text end

new text beginGenerally.new text end

new text beginIn order to meet the written test requirement referred to in section 58A.05, clause (5), an individual shall pass, in accordance with the standards established under this section, a qualified written test developed by the Nationwide Mortgage Licensing System and Registry and administered by a test provider approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards.new text end

new text beginSubd. 2.new text end

new text beginQualified test.new text end

new text beginA written test must not be treated as a qualified written test for purposes of subdivision 1 unless the test adequately measures the applicant's knowledge and comprehension in appropriate subject areas, including:new text end

new text begin(1) ethics;new text end

new text begin(2) federal law and regulation pertaining to mortgage origination;new text end

new text begin(3) state law and rule pertaining to mortgage origination; andnew text end

new text begin(4) federal and state law and rule, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace, and fair lending issues.new text end

new text beginSubd. 3.new text end

new text beginTesting location.new text end

new text beginNorthing in this section prohibits a test provider approved by the Nationwide Mortgage Licensing System and Registry from providing a test at the location of the employer of the applicant or the location of a subsidiary or affiliate of the employer of the applicant, or the location of an entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator.new text end

new text beginSubd. 4.new text end

new text beginMinimum competence.new text end

new text begin(a) An individual is not considered to have passed a qualified written test unless the individual achieves a test score of not less than 75 percent correct answers to questions.new text end

new text begin(b) An individual may retake a test three consecutive times with each consecutive taking occurring at least 30 days after the preceding test.new text end

new text begin(c) After failing three consecutive tests, an individual shall wait at least six months before taking the test again.new text end

new text begin(d) A licensed mortgage loan originator who fails to maintain a valid license for a period of five years or longer shall retake the test, not taking into account any time during which the individual is a registered mortgage loan originator.new text end

Sec. 9.

new text begin[58A.08] STANDARDS FOR LICENSE RENEWAL.new text end

new text beginSubdivision 1.new text end

new text beginGenerally.new text end

new text beginThe minimum standards for license renewal for a mortgage loan originator include that the mortgage loan originator:new text end

new text begin(1) continues to meet the minimum standards for license issuance under section 58A.05;new text end

new text begin(2) has satisfied the annual continuing education requirements described in section 58A.09; andnew text end

new text begin(3) has paid all required fees for renewal of the license.new text end

new text beginSubd. 2.new text end

new text beginFailure to satisfy minimum standards of license renewal.new text end

new text beginThe license of a mortgage loan originator failing to satisfy the minimum standards for license renewal expires. The commissioner may adopt procedures for the reinstatement of expired licenses consistent with the standards established by the Nationwide Mortgage Licensing System and Registry.new text end

Sec. 10.

new text beginSubdivision 1.new text end

new text beginGenerally.new text end

new text beginIn order to meet the annual continuing education requirements referred to in section 58A.08, subdivision 1, clause (2), a licensed mortgage loan originator shall complete at least eight hours of education approved according to subdivision 2 that includes at least:new text end

new text begin(1) three hours of federal law and regulations;new text end

new text begin(2) two hours of ethics, which includes instruction on fraud, consumer protection, and fair lending issues; andnew text end

new text begin(3) two hours of training related to lending standards for the nontraditional mortgage product marketplace.new text end

new text beginSubd. 2.new text end

new text beginApproved educational courses.new text end

new text beginFor purposes of subdivision 1, continuing education courses must be reviewed and approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards. Review and approval of a continuing education course must include review and approval of the course provider.new text end

new text beginSubd. 3.new text end

new text beginApproval of employer and affiliate educational courses.new text end

new text beginNothing in this section precludes an education course, as approved by the Nationwide Mortgage Licensing System and Registry, that is provided by the employer of the mortgage loan originator or an entity that is affiliated with the mortgage loan originator by an agency contract, or a subsidiary or affiliate of the employer or entity.new text end

new text beginSubd. 4.new text end

new text beginVenue of education.new text end

new text beginContinuing education may be offered either in a classroom, online, or by other means approved by the Nationwide Mortgage Licensing System and Registry.new text end

new text beginSubd. 5.new text end

new text beginCalculation of continuing education credits.new text end

new text beginA licensed mortgage loan originator:new text end

new text begin(1) except for subdivision 9 and section 58A.08, subdivision 2, may only receive credit for a continuing education course in the year in which the course is taken; andnew text end

new text begin(2) may not take the same approved course in the same or successive years to meet the annual requirements for continuing education.new text end

new text beginSubd. 6.new text end

new text beginInstructor credit.new text end

new text beginA licensed mortgage loan originator who is an approved instructor of an approved continuing education course may receive credit for the licensed mortgage loan originator's own annual continuing education requirement at the rate of two hours credit for every one hour taught.new text end

new text beginSubd. 7.new text end

new text beginReciprocity of education.new text end

new text beginA person having successfully completed the education requirements approved by the Nationwide Mortgage Licensing System and Registry in subdivision 1 for a state must be accepted as credit toward completion of continuing education requirements in Minnesota.new text end

new text beginSubd. 8.new text end

new text beginLapse in license.new text end

new text beginA licensed mortgage loan originator who subsequently becomes unlicensed must complete the continuing education requirements for the last year in which the license was held before a new or renewed license is issued.new text end

new text beginSubd. 9.new text end

new text beginDeficiency.new text end

new text beginA person meeting the requirements of section 58A.08, subdivision 1, clauses (1) and (3), may make up a deficiency in continuing education as established by rule of the commissioner.new text end

Sec. 11.

new text begin[58A.10] AUTHORITY TO REQUIRE LICENSE.new text end

new text beginIn addition to any other duties imposed upon the commissioner by law, the commissioner shall require mortgage loan originators to be licensed and registered through the Nationwide Mortgage Licensing System and Registry. In order to carry out this requirement, the commissioner may participate in the Nationwide Mortgage Licensing System and Registry. For this purpose, the commissioner may establish by rule or order requirements as necessary, including but not limited to:new text end

new text begin(1) background checks for:new text end

new text begin(i) criminal history through fingerprint or other databases;new text end

new text begin(ii) civil or administrative records;new text end

new text begin(iii) credit history; ornew text end

new text begin(iv) other information as determined necessary by the Nationwide Mortgage Licensing System and Registry;new text end

new text begin(2) the payment of fees to apply for or renew licenses through the Nationwide Mortgage Licensing System and Registry;new text end

new text begin(3) the setting or resetting as necessary of renewal or reporting dates; andnew text end

new text begin(4) requirements for amending or surrendering a license or other activities the commissioner considers necessary for participation in the Nationwide Mortgage Licensing System and Registry.new text end

Sec. 12.

new text beginThe commissioner shall establish a process that allows mortgage loan originators to challenge information entered into the Nationwide Mortgage Licensing System and Registry by the commissioner.new text end

Sec. 13.

new text begin[58A.12] ENFORCEMENT AUTHORITIES, VIOLATIONS, AND PENALTIES.new text end

new text begin(a) In order to ensure the effective supervision and enforcement of this chapter, the commissioner may, pursuant to chapter 14:new text end

new text begin(1) deny, suspend, revoke, condition, or decline to renew a license for a violation of this chapter, rules issued under this chapter, or order or directive entered under this chapter;new text end

new text begin(2) deny, suspend, revoke, condition, or decline to renew a license if an applicant or licensee fails at anytime to meet the requirements of section 58A.05 or 58A.08, or withholds information or makes a material misstatement in an application for a license or renewal of a license;new text end

new text begin(3) order restitution against persons subject to this chapter for violations of this chapter;new text end

new text begin(4) impose fines on persons subject to this chapter pursuant to paragraphs (b) to (d); andnew text end

new text begin(5) issue orders or directives under this chapter as follows:new text end

new text begin(i) order or direct persons subject to this chapter to cease and desist from conducting business, including immediate temporary orders to cease and desist;new text end

new text begin(ii) order or direct persons subject to this chapter to cease any harmful activities or violations of this chapter, including immediate temporary orders to cease and desist;new text end

new text begin(iii) enter immediate temporary orders to cease business under a license or interim license issued pursuant to the authority granted under section 58A.03, subdivision 4, if the commissioner determines that the license was erroneously granted or the licensee is currently in violation of this chapter; andnew text end

new text begin(iv) order or direct other affirmative action the commissioner considers necessary.new text end

new text begin(b) The commissioner may impose a civil penalty on a mortgage loan originator or person subject to this chapter, if the commissioner finds, on the record after notice and opportunity for hearing, that the mortgage loan originator or person subject to this chapter has violated or failed to comply with any requirement of this chapter or any rule prescribed by the commissioner under this chapter or order issued under authority of this chapter.new text end

new text begin(c) The maximum amount of penalty for each act or omission described in paragraph (b) is $25,000.new text end

new text begin(d) Each violation or failure to comply with any directive or order of the commissioner is a separate and distinct violation or failure.new text end

Sec. 14.

new text begin[58A.13] SURETY BOND REQUIRED.new text end

new text beginSubdivision 1.new text end

new text beginCoverage, form, and rules.new text end

new text begin(a) Each mortgage loan originator must be covered by a surety bond meeting the requirements of this section. In the event that the mortgage loan originator is an employee or exclusive agent of a person subject to this chapter, the surety bond of the person subject to this chapter can be used in lieu of the mortgage loan originator's surety bond requirement.new text end

new text begin(b) The surety bond shall provide coverage for each mortgage loan originator in an amount as prescribed in subdivision 2.new text end

new text begin(c) The surety bond must be in a form as prescribed by the commissioner.new text end

new text beginSubd. 2.new text end

new text beginPenal sum of surety bond.new text end

new text beginThe penal sum of the surety bond must be maintained in an amount that reflects the dollar amount of loans originated as determined by the commissioner.new text end

new text beginSubd. 3.new text end

new text beginAction on bond.new text end

new text beginWhen an action is commenced on a licensee's bond the commissioner may require the filing of a new bond.new text end

new text beginSubd. 4.new text end

new text beginNew bond.new text end

new text beginImmediately upon recovery upon any action on the bond the licensee shall file a new bond.new text end

Sec. 15.

new text begin[58A.14] CONFIDENTIALITY.new text end

new text beginSubdivision 1.new text end

new text beginProtections.new text end

new text beginExcept as otherwise provided in Public Law 110-289, section 1512, the requirements under chapter 13 or any federal law regarding the privacy or confidentiality of any information or material provided to the Nationwide Mortgage Licensing System and Registry, and any privilege arising under federal or state law, including the rules of any federal or state court, with respect to the information or material, continue to apply to the information or material after the information or material has been disclosed to the Nationwide Mortgage Licensing System and Registry. The information and material may be shared with all state and federal regulatory officials with mortgage industry oversight authority without the loss of privilege or the loss of confidentiality protections provided by chapter 13 or federal law.new text end

new text beginSubd. 2.new text end

new text beginAgreements and sharing arrangements.new text end

new text beginFor purposes of this section, the commissioner is authorized to enter agreements or sharing arrangements with other governmental agencies, the Conference of State Bank Supervisors, the American Association of Residential Mortgage Regulators, or other associations representing governmental agencies as established by rule or order of the commissioner.new text end

new text beginSubd. 3.new text end

new text beginNonapplicability of certain requirements.new text end

new text beginInformation or material that is subject to a privilege or confidentiality under subdivision 1 is not subject to:new text end

new text begin(1) disclosure under any federal or state law governing the disclosure to the public of information held by an officer or an agency of the federal government or the respective state; ornew text end

new text begin(2) subpoena or discovery, or admission into evidence, in any private civil action or administrative process, unless with respect to any privilege held by the Nationwide Mortgage Licensing System and Registry with respect to the information or material, the person to whom the information or material pertains waives, in whole or in part, in the discretion of the person, that privilege.new text end

new text beginSubd. 4.new text end

new text beginCoordination with Minnesota Government Data Practices Act.new text end

new text beginChapter 13 relating to the disclosure of confidential supervisory information or any information or material described in subdivision 1 that is inconsistent with subdivision 1 is superseded by the requirements of this section.new text end

new text beginSubd. 5.new text end

new text beginPublic access to information.new text end

new text beginThis section does not apply with respect to the information or material relating to the employment history of, and publicly adjudicated disciplinary and enforcement actions against, mortgage loan originators that are included in the Nationwide Mortgage Licensing System and Registry for access by the public.new text end

Sec. 16.

new text begin[58A.15] INVESTIGATION AND EXAMINATION AUTHORITY.new text end

new text beginSubdivision 1.new text end

new text beginGenerally.new text end

new text beginIn addition to any authority allowed under this chapter, the commissioner may conduct investigations and examinations according to subdivisions 2 to 9.new text end

new text beginSubd. 2.new text end

new text beginAuthority to access information.new text end

new text beginFor purposes of initial licensing, license renewal, license suspension, license conditioning, license revocation or termination, or general or specific inquiry or investigation to determine compliance with this chapter, the commissioner may access, receive and use any books, accounts, records, files, documents, information or evidence including but not limited to:new text end

new text begin(1) criminal, civil, and administrative history information, including nonconviction data;new text end